The New York Times is reporting today that Samsung Electronics has made an unsolicited $5.85 billion cash offer for SanDisk, the flash memory card manufacturer.
According to the article, Samsung's offer of $26 a share was first made in August and only revealed to investors after the U.S. market closed Tuesday with SanDisk trading at $15.04. In after-hours trading, shares rose to nearly $23 a share as news of the proposal spread.
In an earlier Sept. 5 statement, the company had acknowledged, "SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities. We evaluate all of these opportunities, but maintain a policy of not commenting on market rumors or speculation."
But in a letter released Tuesday, Eli Harari, SanDisk founder and chief executive, had rejected the offer, claiming it significantly undervalued the company and characterizing it as "opportunistically timed."
Courtesy of Mike Pasini, The Imaging Resource
According to the article, Samsung's offer of $26 a share was first made in August and only revealed to investors after the U.S. market closed Tuesday with SanDisk trading at $15.04. In after-hours trading, shares rose to nearly $23 a share as news of the proposal spread.
In an earlier Sept. 5 statement, the company had acknowledged, "SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities. We evaluate all of these opportunities, but maintain a policy of not commenting on market rumors or speculation."
But in a letter released Tuesday, Eli Harari, SanDisk founder and chief executive, had rejected the offer, claiming it significantly undervalued the company and characterizing it as "opportunistically timed."
Courtesy of Mike Pasini, The Imaging Resource
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