Samsung Withdrawals Bid For Sandisk

Posted by Kallan Dahn Monday, October 27, 2008

Samsung and Sandisk have been in negotiations for six months trying to hammer out a fair deal for Samsung to purchase the chip manufacturer. Originally Samsung offered $26 per share, but after reports of high losses for Sandisk shares dropped to only $14 per share. Samsung offered SanDisk $5.8 Million dollars which was promptly rejected. After SanDisk rejected this offer Samsung immediately withdrew their offer to purchase. Samsung sites doubts of the companies value, and a shaky economic climate as reasons for their withdrawal. For now at least, Samsung will continue to pay SanDisk nearly $500 Million a year in royalties.

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