ID :
26094
Wed, 10/22/2008 - 20:32
Auther :
Shortlink :
https://www.oananews.org//node/26094
The shortlink copeid
Samsung Electronics drops bid to buy SanDisk
(ATTN: REMOVES time element in para 5)
SEOUL, Oct. 22 (Yonhap) -- Samsung Electronics Co., the world's largest maker of computer memory chips, said Wednesday it scrapped its bid to purchase U.S. flash memory giant SanDisk Corp. due to the current financial crisis and stalled negotiations between the parties.
"Considering the recent financial crisis and SanDisk's weak performance... (We)
announce an official withdrawal of our offer to acquire SanDisk," Samsung said in
a regulatory filing.
Samsung made a US$5.85 billion bid to take over SanDisk, which makes flash memory
chips. But the Milpitas, California-based company rebuffed Samsung's offer last
month, saying it appeared "opportunistic" and undervalued the company.
The South Korean company also blamed SanDisk's rejection of its offer for stalled
negotiations during the past six months.
Shares of Samsung Electronics tumbled 2.12 percent to close at 508,000 won on the
Seoul bourse.
In a separate statement sent to SanDisk's management earlier in the day, Samsung
said it was "disappointed" that its offer hadn't been realized, stating that it
was no longer interested in purchasing SanDisk due to the company's "uncertain
earnings prospects."
Despite the withdrawal, Samsung said it is open to possible business
opportunities with other domestic and foreign partners.
SanDisk owns a number of patents related to flash memory chips, and Samsung has
paid some $352 million annually in patent fees to the U.S. company.
On Monday, SanDisk reported a second-consecutive quarterly loss after an industry
glut drove down flash memory chip prices. The U.S. company also said that it
plans to sell some equipment to its joint venture partner Toshiba Corp. in a bid
to bolster its finances.
odissy@yna.co.kr
(END)
SEOUL, Oct. 22 (Yonhap) -- Samsung Electronics Co., the world's largest maker of computer memory chips, said Wednesday it scrapped its bid to purchase U.S. flash memory giant SanDisk Corp. due to the current financial crisis and stalled negotiations between the parties.
"Considering the recent financial crisis and SanDisk's weak performance... (We)
announce an official withdrawal of our offer to acquire SanDisk," Samsung said in
a regulatory filing.
Samsung made a US$5.85 billion bid to take over SanDisk, which makes flash memory
chips. But the Milpitas, California-based company rebuffed Samsung's offer last
month, saying it appeared "opportunistic" and undervalued the company.
The South Korean company also blamed SanDisk's rejection of its offer for stalled
negotiations during the past six months.
Shares of Samsung Electronics tumbled 2.12 percent to close at 508,000 won on the
Seoul bourse.
In a separate statement sent to SanDisk's management earlier in the day, Samsung
said it was "disappointed" that its offer hadn't been realized, stating that it
was no longer interested in purchasing SanDisk due to the company's "uncertain
earnings prospects."
Despite the withdrawal, Samsung said it is open to possible business
opportunities with other domestic and foreign partners.
SanDisk owns a number of patents related to flash memory chips, and Samsung has
paid some $352 million annually in patent fees to the U.S. company.
On Monday, SanDisk reported a second-consecutive quarterly loss after an industry
glut drove down flash memory chip prices. The U.S. company also said that it
plans to sell some equipment to its joint venture partner Toshiba Corp. in a bid
to bolster its finances.
odissy@yna.co.kr
(END)
