Western Digital Corp. is close to a settlement with activist investor Elliott Management Corp. that calls for the $19 billion company to consider more seriously splitting into two, according to people familiar with the matter.
Elliott in May revealed a 6% stake in Western Digital
and sent a letter calling on the company to explore a separation into businesses focused on traditional hard drives for computers and flash memory, respectively.
A truce, which might also include potential changes to Western Digital’s board, could be unveiled as soon as this week, assuming the talks don’t fall apart, the people said.
San Jose, Calif.-based Western Digital, which has a market value of around $19 billion, previously said it would consider Elliott’s ideas. At a conference in late May, Western Digital Chief Executive David Goeckeler said the company and Elliott have been discussing additional ways to improve the company’s valuation.
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