updated 05:28 pm EDT, Mon June 24, 2013
Offer props up sTec stock by over $3 per share in one trading day
Hard drive manufacturer Western Digital has made an offer for solid-state drive manufacturer sTec. The offer for $6.85 per share is worth about $340 million, and represents a 91 percent increase to the stock's Friday price. The sale is expected to close, pending regulatory concerns, by the end of 2013.
The SSD manufacturer's CEO and co-founder was forced out in September relating to insider trading charges. As a result of the scandal, the stock has fallen more than 50 percent in a year, with another halving this year. As a result of the offer, the stock has climbed to $6.85.
Balch Hill Capital said in December that sTec should consider allying itself with a larger company. The investment firm believes that both the ousted CEO and his brother, the current CEO, should resign from the board of directors upon the acquisition by Western Digital.