Seagate Technology (STX) and Toshiba are competing to acquire TDK's magnetic-head business for hard-disk drives in a deal that could be worth several billion dollars, Bloomberg reported, citing people familiar with the matter.

Toshiba began talks with TDK in the spring, followed by a higher offer from Seagate in the summer, the people told Bloomberg.

Executives from the three companies met in Tokyo last week to discuss supply arrangements, including a potential joint venture, although the talks remain preliminary and nothing has been decided, according to the report.

Seagate and Toshiba did not immediately respond to MT Newswires' request for comment.

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