resumed its slide Monday, despite promises by the company's largest stockholder and management not to sell their stake in the company for the duration of a lockup period ending Jan. 20, 2004.
In recent trading, shares of the hard-drive maker were off $1.43, or 6.4%, to $20.82. The stock fell 25% last week, on a plethora of negative announcements during Seagate's fiscal
first-quarter earnings call, including lower margins, a
Securities and Exchange Commission
investigation and an amended lockup agreement that allows insiders to sell 20.3 million shares ahead of the original date in early 2004.
The slide halted Friday after the company said that New SAC, Seagate's largest shareholder, won't sell any of the 16 million shares it is permitted to divest under a modification of the 180-day lockup, which began after the company's $1.3 billion secondary share offering in July.
In addition, CEO Steve Luczo, President Bill Watkins and Chief Financial Officer Charles Pope have individually committed not to sell any shares of Seagate common stock during the same lockup period.
The company also said that it is complying with a request by the SEC to hand over all analyst reports pertaining to Seagate that were written between January 2000 and August 2003. A spokesman for Seagate said the company does not know why the SEC made the request. A spokesman for the SEC declined to comment.
Seagate went private in November 2000, in a leveraged buyout led by a group including Silver Lake Partners and Seagate's executives. The company returned to public ownership in December 2002, with an $870 million public offering and a $1.3 billion secondary offering in July. Silver Lake and the executives formed New SAC, which still holds 282.5 million Seagate shares, or 63% of the company.