Hitachi has not posted a profit in its hard disk drive (HDD) business since buying it from IBM for $2 billion in 2002 due to crumbling prices of disk drives.

Investment bank Merrill Lynch has already sounded out private equity funds that may be interested in the unit, according to several financial industry sources.

The Carlyle Group, Kohlberg Kravis Roberts, Bain Capital, and Silver Lake are among funds cited as possible investors, the sources said.

Hitachi may seek a fund to buy an equity stake in the hard disk drive business and then work with the fund to help revive it, one financial industry source said.But it was not immediately clear if Hitachi might also look to unload the entire business.

By: DocMemory
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