We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,258 News Articles

Sandisk rejects Samsung takeover bid

Unsolicited offer undervalues flash card maker

Flash storage card manufacturer SanDisk has rejected an unsolicited takeover bid from hardware maker Samsung Electronics, saying the offer undervalues the company.

The two companies had been in takeover talks for about four months, but Samsung went public with its offer on Tuesday, apparently after discussions had broken down.

"Our offer insulates your shareholders from the risk of market conditions that have severely deteriorated and are expected to remain challenging," said Samsung vice chairman and CEO Yoon-Woo Lee in a letter to SanDisk executives.

SanDisk chairman and CEO Eli Harari said in a statement his company is willing to discuss a takeover, but that the $26 per share offer "is opportunistically timed at the trough of an industry-wide downturn" and undervalues the flash card maker.

Samsung argues that a combination of the companies would create a powerful global brand and allow the resulting company to position Flash as the preferred technology for delivery and storage of content.

While Samsung said that SanDisk is a technology leader and has an innovative culture, it also argued that independently investing in the necessary facilities required to further technology innovation would be a significant tax on SanDisk's business.

Should the deal go through, Samsung would continue to operate SanDisk as a separate subsidiary and would not plan to lay off workers, it said.


IDG UK Sites

Samsung Galaxy S6 launch as it happened: Galaxy S6 launch video and live blog - watch again as...

IDG UK Sites

5 things we hate about MWC: What it's like to be a journalist at a technology trade show

IDG UK Sites

Interview: Lauren Currie aims to help design students bridge skills gap

IDG UK Sites

12in Retina MacBook Air release date rumours: new MacBook Air to have fingerprint ID, could launch...