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Seagate drops plan to go private

After announcing its intentions to seek a sale to a private equity firm in October, Seagate has decided to stay public and will buy back £1.3bn in stock instead

After considering its options, Seagate has decided to remain a public company.

The Scotts Valley, California-based hard-drive maker said on Monday that after taking a look at what private equity firms were offering, it will not take the company private, and will instead buy back $2bn (£1.3bn) worth of stock from shareholders.

"Management and the board have chosen to cease discussions concerning a private equity-led leveraged buyout," Seagate chief executive Stephen Luczo said in a statement. "Given the strong debt markets, improving business conditions and other financing options, Seagate has initiated a plan to further optimize its capital structure to maximize shareholder returns."

Luczo announced in October that the company was exploring a sale to a private equity firm. It was reported that at least two firms were interested.

For more on this ZDNet UK-selected story, see Seagate to remain a public company after all on CNET News.