Samsung offers SanDisk $26 per share, SanDisk rejects
Samsung finally gave up on four months of unsuccessful negotiations with SanDisk, and has offered to buy the company for $5.8 billion in cash or $26 per share.
Apparently, the two electronics companies have been in talks with each other for four months, and SanDisk refuses to agree on a deal with Samsung. Samsung says it is “deeply disappointed,” and is now awaiting the response of SanDisk.
Update: SanDisk has now issued a statement rejecting Samsung’s offer for $5.85 billion. Details are available below.
It’s hard to imagine SanDisk selling out now, since after four months of negotiations they did not budge, but Samsung’s offer is certainly hard to resist.
If Samsung manages to convince SanDisk to sell themselves, they will not only gain value as a flash memory maker, but also as a portable music player maker. SanDisk’s MP3 player market share is even bigger than Microsoft. There are definitely a lot of benefits in store for Samsung in this deal.
SanDisk has not released an official response to Samsung’s offer yet. As an aside, Toshiba hasn’t reacted on the matter as well.
Update: SanDisk didn’t like Samsung offer, calling it “inadequate in multiple respects,” as far as the value of the company is concerned. The company recalls a time when Samsung said “it might be willing to pay a significant premium,” back at the time they were first approached by the Korean electronics company. SanDisk goes on to say that Samsung’s offer “is an opportunistic attempt to take advantage of SanDisk’s current stock price.” Kind of reminds you of the Yahoo-Microsoft deal, doesn’t it?