SanDisk has finally decided to run for cover.
The Milpitas, Calif., company accepted Toshiba’s $1 billion offer for 30% of the joint-venture NAND memory production. A cash infusion that will help SanDisk in its fight over Samsung’s takeover offer.
“This assets-for-cash swap will bolster SanDisk’s coffers during a time when the company’s stock price is depressed, but their cash position was not desperate during their last earnings announcement… We can only guess that this cash might be used to repurchase depressed Sandisk shares… SanDisk could use this measure to help thwart Samsung’s takeover bid, remaining independent until 2009’s NAND recovery drives its stock back to record levels”, explains Objective Analysis analyst, Jim Handy.
Most industry analysts I talked to also see the NAND market rebound in 2009. In any case, this latest move should boost SanDisk shares and make a Samsung takeover attempt all the more expensive!
[...] And the hurried renegotiation of the Toshiba relationship. [...]
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