Here we go: Hard drive maker Seagate Technology
Both Seagate and chief rival Western Digital
Private equity firms are masters of sniffing out undervalued assets and flipping them over a couple of years for a sweet profit. With acquisition talk building, you could see public companies get interested as well. Other potential buyers include serial buyout bingers Hewlett-Packard
However, there are parts of a Seagate acquisition that wouldn't make sense for this list of serial acquirers. IBM exited the hard drive market years ago by selling that operation to Hitachi. Cisco would be better served by a builder of storage systems such as NetApp
With official word from Seagate's management, this newest deal-making process sits a cut above rumors, but is still less than signing on the dotted line. You can still buy Seagate and benefit from the final buyout premium, if it happens. Conversely, current shareholders skeptical of a complete deal can sell and enjoy the preliminary pop.
How are you playing Seagate's announcement? Share your thoughts in the comments box below.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Fool has written calls (bull call spread) on Cisco Systems. The Fool owns shares of International Business Machines and Oracle. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.