Western Digital begins cash tender offer for Komag

By Lisa Kerner

Charlotte, N.C., July 11 - Western Digital Corp. began its $32.25-per-share cash tender offer for Komag, Inc. The offer is slated to end at midnight ET on Aug. 7, according to a term sheet filed with the Securities and Exchange Commission.

The boards of directors of Western Digital and Komag unanimously approved the June 28 agreement.

As previously reported, the $1 billion transaction is expected to close in the third quarter of 2007.

Western Digital said it will fund the transaction, including the retirement of Komag's convertible notes due 2014, through the companies' cash and with proceeds from a senior secured term loan of up to $1.25 billion.

Western Digital is a Lake Forest, Calif., disk drive company, and Komag is a San Jose, Calif.-based supplier of thin-film disks.

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