Updated from 5:04 p.m. ESTSanDisk ( SNDK) may not be entirely out of the bidding to buy Lexar Media ( LEXR) following its failed offer to acquire the company last year. That's the conclusion of one Wall Street analyst after a review of the details of a recent Securities and Exchange Commission filing
SanDisk spokesperson Ken Castle said the company would not comment on anything to do with Lexar. Shares of SanDisk closed up $1.69, or 2.9%, to $59.13. One major issue affecting the situation is the fate of Lexar's valuable intellectual property relating to flash-memory controllers. Under the terms of the Lexar-Micron marriage, Micron could in certain instances have royalty-free cross-licensing rights to Lexar's intellectual property through 2011, even if the deal is terminated. If SanDisk were to acquire Lexar, Chillara said, SanDisk could potentially challenge the validity of that licensing agreement in court. Even without a rival offer from SanDisk, Chillara said it's possible that shareholders could vote down Lexar's merger with Micron. (Chillara has no stake in the companies mentioned). Shares of Lexar closed up 29 cents, or 3.3% to $9. Micron's stock was up 46 cents, or 3.2%, to $14.89.