Samsung pulls out of SanDisk deal

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The turbulence of the global economy has claimed yet another victim in the form of the impending nuptials between Samsung and SanDisk.

After negotiations broke down, last month Samsung launched a hostile $5.8 billion cash-only offer to take over the memory giant. Yesterday, it announced the deal was off.

“Samsung Electronics hearby withdraws its proposal to acquire all the 
outstanding shares of SanDisk Corporation for $26 per share in cash,” the company said in a statement.

“Although Samsung Electronics had made efforts to pursue an acquisition with SanDisk Corporation for last six months, both parties have not been able to reach an agreement. The decision to withdraw the proposal…was made in considerations of the growing uncertainties in SanDisk’s business, its stand alone value, and the current difficult economic environment.”

News of the withdrawal comes in the same week that SanDisk published its third quarter results, reporting an operating loss of $250 million.

The storage maker responded to Samsung’s withdrawal in a statement. “From the start of this process SanDisk's Board has remained open to a transaction that recognises SanDisk's long-term value and contains the right protections for SanDisk's shareholders.We repeatedly outlined a clear path to hold further discussions, including most recently in our letter on September 15, and Samsung consistently chose to ignore that path and, in fact, never contacted SanDisk regarding their proposal after we delivered our letter. We believe this raises questions about the real motivations behind Samsung's offer,” it stated.

The statement continued: “…Going forward, we remain committed to diligently executing against our business strategy and will continue to take appropriate steps to weather the current macroeconomic environment and ensure SanDisk's long-term success.”

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