"We do not believe there is any basis in law or fact for the damage award of the arbitrator," said John Coyne, president and chief executive officer. "We believe the company acted properly at all times and we will vigorously challenge the award. This does not affect our ability to conduct our operations, to complete the recovery and recommencement of our Thailand operations or, subject to obtaining the required regulatory approvals, to consummate our planned acquisition of Hitachi GST."
Seagate did not comment on the matter.
Western Digital in March agreed to acquire Hitachi's hard drive business for $4.3 billion, which is undergoing regulatory approvals. Seagate in April agreed to buy Samsung's hard drive business for $1.38 billion, which has been approved by the European Union.