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October 6, 1998

VERITAS SHAREHOLDERS WORRIED BY $1.6BN MERGER DEAL

By CBR Staff Writer

Investors reacted badly to Veritas Software Corp’s acquisition of part of Seagate Software Inc yesterday, with the value of its shares plummeting 42% by the close of market. Seagate agreed to pay around $1.6bn for the networking and storage unit of Seagate, valued at Monday’s closing rate. The plunge knocked some $600m from the value of the deal. Shares in rival company Legato Systems Inc also fell 22%. The combined Veritas/Seagate would hold around 37% of the storage management marketplace.

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