Samsung Electronics revealed, yesterday, that it has been conducting ongoing discussion with SanDisk Corporation regarding a possible purchase of SanDisk by Samsung. After 4 months of talks and no progress, Samsung has made public it's latest letter to the SanDisk board of directors in which the company reiterates the, what it feels to be, generous offer of $26 US per share. SanDisk's stock rests at $20.92 at market close, today.In the letter, Samsung CEO and vice chairman, Yoon-Woo Lee, is very direct about his company's offer and the current state of SanDisk's market value. "SanDisk continues to cling to unrealistic expectations on both its standalone market value and an appropriate merger price," says Lee in his letter. He then goes on to address concerns SanDisk brought up in a previous letter to Samsung, "...your letter states that our proposed price does not 'reflect the intrinsic value of SanDisk’s business' and references the 52-week high. The world has changed dramatically in the past 52 weeks as can be seen from SanDisk’s own disappointing results."
Upon news of a possible purchase of the company by Samsung, SanDisk's shares rose $5.88 US.
View: Full Letter to SanDisk Board of Directors
Does this NOT sound just like a MS/Yahoo story, rewritten with different names?
Yeah, I do hope Sandisk takes advantage of a VERY nice offer.
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