Samsung tables $5.85bn bid to acquire SanDisk


Samsung tables $5.85bn bid to acquire SanDisk

Paul Kunert

Samsung has launched a bid to acquire US Flash memory giant SanDisk Corp for around $5.85bn (£3.27bn) but arch rival Toshiba may try to scupper its plans with a rival offer.

This represents $26 per share, a 93% premium on SanDisk's stock price as of 4 September when the Korean firm first revealed plans to pursue the acquisition.

In a letter sent to Sandisk's board, Samsung CEO Lee Yoon Woo said the deal on the table was "full and fair" and he hoped they would give the proposal the green light.

"Sandisk continues to cling to unrealistic expectations on both its standalone market value and an appropriate merger price," he said.

But according to news agency Reuters, Toshiba said it "was interested" in Sandisk and though it had not yet entered into serious negotiations Shozo Saito, senior corporate vice president said it may make a move.

"We need to take preventative steps, if [SanDisk] looks like it'll be acquired," he told reporters at the Industry Strategy and Technology Forum in Singapore.

Toshiba and SanDisk have a R&D and manufacturing partnership in NASND Flash memory, a market worth some $15bn.

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