StorageTek has finally hired two financial advisors to assess strategic alternatives that could include a sale of the data storage pioneer.
Last month the shareholders, which own approximately 7.4 percent of StorageTek, sent to the company's board of directors a letter which urged the board to adopt a plan to seek a sale or strategic combination of StorageTek.
The shareholders were angry with the ongoing poor performance of StorageTek shares which are languishing near their 52-week low of $14.88. The shares have lost nearly 60 per cent of their value since reaching a 52-week high of 40 back in February.
StorageTek's hiring of Goldman, Sachs & Co and McKinsey & Company gave the stock price a fillip Friday, when they closed up $2 at $17.On Wednesday last week the company announced that its third quarter sales and profit figures would be less that analysts expected. It blamed the shortfall on the fact that customers might be delaying making purchases as they solved their Y2K problems.
StorageTek said it would not comment further until it completed its review of strategic alternatives.
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