Will we see an action replay of Microsoft-Yahoo deal? I am not sure of it but it seems the story has been inspired from the same script. Samsung Electronics apparently offered Sandisk to buy all of its outstanding shares for $26 per share in cash. SanDisk however, spoilt Samsung’s gameplan by saying that “Samsung significantly undervalues the long-term prospects of Sandisk and is making an opportunistic attempt to take advantage of SanDisk’s current stock price “.
In the next move, Samsung reiterated the offer and raised the per share price to $28.75 which was a premium according to Samsung but 55% discount of the 52-week high price if we go by SanDisk’s word. But obvious the deal was rejected again. If the deal isn’t closed soon, it can prove hazardous to Samsung’s NAND business because Sandisk indirectly threatens by saying “We also note that the run rate of Samsung’s royalties to SanDisk continues to grow. Our view remains that without the right to use SanDisk’s patents, Samsung’s stand-alone NAND business’ prospects would be significantly compromised.”
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