Western Digital Reviews Potential Strategic Alternatives

(RTTNews) - Western Digital Corp. (WDC) said that that it is reviewing potential strategic alternatives, including options for separating its Flash and HDD franchises.

The announcement comes after activist investor Elliott Investment Management last month urged the company to separate its Flash business. Elliott had also offered to invest $1 billion to facilitate a sale or a spin-off of the business.

Elliott said Tuesday that it is prepared to provide strategic resources and additional capital to help the company realize the full value of both of its businesses.

In conjunction with the strategic review process, Western Digital and Elliott have signed a customary non-disclosure agreement and a letter agreement.