Saudi-European Parliamentary Friendship Committee discusses cooperation during Strasbourg visit    Diriyah to host third IMFC Deputies meeting under Saudi chairmanship    15,135 decisions taken to penalize Saudis and expats for violations    Saudi stock market loses half a trillion riyals, with Aramco's losses amounting to SR340 billion Tariff turmoil rattles Gulf markets    KAU to host Digital Communication Conference in Jeddah from April 29 to May 1    TGA: Riyadh tops with 45% of 290 million orders delivered in 2024    Aja and Salma mountains draw nature lovers to Hail's rugged landscapes    US revokes all visas for South Sudanese nationals over deportation dispute    Death toll from Myanmar earthquake rises to 3,471    Macron to hold Gaza summit with Egypt and Jordan in Cairo    Benzema rescues Al Ittihad with stoppage-time equalizer in thrilling Jeddah Derby    Al Qadsiah and Al Ettifaq share spoils in tense Eastern Derby stalemate    Moussa Diaby praises Al Ittihad's resilience after Jeddah Derby draw "When you can't win, you take a point"    Saudi assistant referee Iman Al Madani joins AFC elite list for 2025    Riyadh Art Week launches with over 50 galleries showcasing global artistic dialogue    Turki Al-Sheikh announces five new Saudi film projects to be produced in Riyadh    Saudi Ministry of Education to showcase innovations at 2025 Geneva International Exhibition    Ed Sheeran weaves Persian music into new song, Azizam    Al-Jadaan: Crown Prince's directives confirm government's ability to bring back balance to real estate market    Veteran Bollywood actor Manoj Kumar dies at 87    Screen time in bed linked to insomnia, study finds    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



SanDisk rejects Samsung's $6b bid
Published in The Saudi Gazette on 18 - 09 - 2008

US flash memory card maker SanDisk Corp rejected a $5.9 billion bid by top memory chip maker, Samsung Electronics Co Ltd, but would not rule out a deal at a better price.
Buying SanDisk would give Samsung advanced technology and a tighter grip on its market dominance as smaller rival Toshiba Corp is challenging its position and the industry battles steep memory price falls because of capacity overbuilding.
Samsung, which pays SanDisk over $350 million a year in royalties to use patented flash technology, is looking not only to slash those costs and but also gain control of SanDisk's many licenses that control the industry. “With the offer, Samsung is eyeing an industry shakeup in the 4-5 year horizon. Samsung and SanDisk can work on technology and marketing together,” said Park Hyun, an analyst at Prudential Investment & Securities.
Samsung ranked No. 1 in the global NAND flash market in the second quarter with a 42.3 percent share, according to market research firm iSuppli, followed by Toshiba and Hynix, with 27.5 percent and 13.4 percent, respectively.
SanDisk said in a statement that Samsung's $26-a-share cash offer - an 80 percent premium to its Monday close - undervalued the company, but it remained open to a deal with Samsung at a price that recognizes its “intrinsic value”.
SanDisk shares soared 53 percent to $23 in extended trading on Tuesday US time after Samsung went public with its bid following months of private talks that failed to produce a deal.
Samsung, South Korea's biggest stock, ended flat at 525,000 won on Wednesday, lagging the wider Seoul market's 2.7 percent gain.
When asked about whether Samsung could raise its bid, James Chung, a company spokesman in Seoul, said: “It is premature to comment on the matter.” He called the bid “full and fair”.
A deal around that level would be the biggest takeover by cash-rich Samsung, which has grown its business without resorting to big M&A deals. It will be also an unprecedented deal in the NAND industry which has seen many alliances but not a full acquisition of this scale.
SanDisk is the world's biggest maker of flash memory based-data storage cards. Analysts estimate SanDisk's flash card products consume up to 15 percent of the global NAND chip output, a large portion of them coming from SanDisk's joint plant with Toshiba in Japan.
Flash memory is a form of compact data storage, also used in a number of consumer gadgets, including digital cameras, cellphones and portable music players.
Samsung would also be able to secure SanDisk's advances in solid state drive (SSD), the flash-based technology that is likely to power most personal computer memory in a few years.
On Tuesday, Toshiba said it was open to a combination with SanDisk, but there were no concrete talks yet.
Toshiba, the world's No.2 NAND flash maker, and third-ranked Hynix Semiconductor Inc both declined to comment on Wednesday on Samsung's offer.
Analysts said Samsung might buy SanDisk shares from institutional investors at the $26 offer price, building up a minority stake to put more pressure on its target. “Given SanDisk shares have lost so much value since late last year, and the NAND flash market is suffering a downturn that is likely to last for a while, there must be some institutional investors who want to sell to Samsung (and exit the market),” said Park at Prudential.
“Samsung very likely has made some sort of arrangements with them before making the offer. Samsung could secure 20-30 percent of SanDisk initially, then work on raising its stake.”
Writing to SanDisk CEO Eli Harari, Samsung CEO Yoon-Woo Lee said he was “deeply disappointed” that the Milpitas, Calif.-based company “continues to cling to unrealistic expectations on both its stand-alone market value and an appropriate merger price.”


Clic here to read the story from its source.