No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Flash memory maker Sandisk slumped on Wednesday after it said Western Digital was planning to raise about $3.2bn by selling some of its stake in a secondary public offering.
Western Digital will offer just over 5.8m shares at $545 each. Sandisk said Western is expected to exchange the shares for certain indebtedness held by affiliates of J.P. Morgan Securities and BofA Securities.
Following completion of the debt-for-equity exchange, Western Digital will own just under 1.7m shares, which it intends to dispose of in one or more subsequent exchanges for outstanding shares of WDC common stock and/or through pro rata distributions to shareholders.
J.P. Morgan and BofA are acting as the joint lead book-runners for the offering, which is due to close on 19 February.
At 0950 GMT, the shares were down 2.1% in pre-market trade at $578.30.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.