SanDisk Responds

By Chris Preimesberger  |  Posted 2008-10-22 Print this article Print

SanDisk took only about 3 hours to respond.

"SanDisk's board has remained open to a transaction that recognizes SanDisk's long-term value and contains the right protections for SanDisk's shareholders," the company said in a statement to press members and analysts.

"We repeatedly outlined a clear path to hold further discussions, including most recently in our letter on Sept. 15, and Samsung consistently chose to ignore that path and, in fact, never contacted SanDisk regarding their proposal after we delivered our letter," SanDisk said. "We believe this raises questions about the real motivations behind Samsung's offer."

This is similar to a series of miscommunications involving the overtures Microsoft made to Yahoo in its two takeover attempts earlier this year.

"This has so far been quite a melodrama, and we anticipate further very significant announcements before the matter is put to rest," Objective Analysis principal analyst Jim Handy said in an e-mail brief. "With this there will probably be significant share price shifts at SanDisk. This is no market for the timid!"

This is good for Samsung, Handy noted. 

"Samsung's stockholders will be rewarded if the company can acquire SanDisk at the lowest possible price.  Today's announcement should help Samsung push SanDisk's share price lower, making it possible to acquire the company at a better deal than the $26 per share that Samsung previously offered," Handy said.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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