Multi-billion dollar offer in the wings?
These rumblings have been felt before and now they’re back more strongly than ever…
King of ‘World’s Firsts’ Samsung has this week admitted it has investigated the possibility of buying flash memory maestro SanDisk.
“We are looking at various opportunities regarding SanDisk, but nothing has been decided yet,” admitted Samsung spokesman James Chung to Reuters.
In response, SanDisk made the simple statement: “SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities. We evaluate all of these opportunities, but maintain a policy of not commenting on market rumors (sic – yes, we’re English) or speculation.”
So talks have clearly been held and given SanDisk’s share price has surprisingly nosedived since mid-May – when they peaked at $33 apiece – to just $13.46 it could be a particularly attractive time to go for a business which appears substantially undervalued.
Add in the fact SanDisk holds patents on virtually every format of flash memory available and Samsung has to pay it a reported 400 billion won (approx. £18m) per year in licensing fees and a mooted $3.2bn bid looks value for money. The picture could still muddy however as traditional moving parts storage maker Seagate is keen to hop on the flash bandwagon and has previously been linked with a move.
Expect developments soon…
via Washington Post