Maxtor Corp has bowed to the improved offer by Hyundai Electronics America Inc for all the shares it does not already own in the San Jose disk drive manufacturer. Maxtor’s special committee has agreed to recommend the offer of $6.70 a share to its board subject to negotiation of a definitive acquisition agreement. Hyundai already owns 37% of Maxtor and Maxtor doesn’t have the financial resources to continue on its own. Hyundai paid $150m for a 37% stake in February 1994, and when it was running out of cash in September it sold its Asian manufacturing plants to Hyundai for $100m. The final deal values Maxtor at $350m, implying that Hyundai will be paying out $220m more.
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