Western Digital Corp (NASDAQ:WDC) shares are trading higher Tuesday after Elliott Investment Management sent a letter to Western Digital's board, calling for a full strategic review of the value that could be created by separating its flash unit.
Elliott Investment Management, which has a 6% stake in Western Digital valued around $1 billion, offered at least $1 billion of incremental equity capital to be utilized either in a spin-off transaction of the company's flash memory business or as equity financing in a sale or merger with a strategic partner.
Elliott argues that a full separation of the company's flash business would allow both business arms to be more successful while also unlocking significant value. By separating the businesses, Elliott believes Western Digital's stock price could climb above $100 per share by the end of 2023.
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WDC 52-Week Range: $43.85 - $78.19
According to data from Benzinga Pro, the stock was up 12.9% at $60.90 at time of publication.
Photo: courtesy of Western Digital.
