SanDisk Gets Buyout Offer (Update)

Another sticking point appears to be the intellectual property licensing agreement between the two companies, which brings SanDisk hundreds of millions of dollars of royalty revenue a year, and which expires in August 2009.

According to Lee's letter, SanDisk has insisted on limited access to each others' books until the IP agreement is renewed.

"Despite our substantial efforts on the IP front, you have agree to schedule only two meetings since July and during those meetings you have been unwilling to engaged with us on any productive proposals that adequately recognize the changed market dynamics in your markets and the decline in value of your patent portfolio," Lee writes.