SanDisk reacts to Samsung's withdrawal of its $26-per-share offer

By Lisa Kerner

Charlotte, N.C., Oct. 22 - SanDisk Corp. said its board of directors has remained open to a transaction with Samsung Electronics Co., Ltd. that recognizes SanDisk's long-term value.

According to SanDisk, it outlined a clear path to hold further discussions that Samsung "consistently chose to ignore."

Samsung chose to withdraw its unsolicited $26-per-share cash offer for SanDisk Tuesday.

SanDisk had already rejected the offer, valued at about $5.85 billion, in September, calling it "inadequate" and "opportunistic," it was previously reported.

In an Oct. 21 letter to SanDisk's board, Samsung said it was no longer interested in acquiring SanDisk at the $26-per-share price.

"Your surprise announcements of a quarter billion dollar operating loss, a hurried renegotiation of your relationship with Toshiba and major job losses across your organization all point to a considerable increase in your risk profile and a material deterioration in value, both on a stand-alone basis as well as to Samsung," the Samsung letter said.

Samsung is a Seoul, South Korea, electronics company specializing in semiconductor, telecommunication, digital media and digital convergence technologies.

SanDisk develops, manufactures and markets NAND-based flash storage card products that are used in consumer electronics products. The company is located in Milpitas, Calif.

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