NEW YORK (TheStreet) -- SanDisk Corp. (SNDK) stock is falling 1.80% to $66.46 in mid-morning trading on Tuesday after Western Digital Corp.'s (WDC) plans to acquire the flash storage maker were altered when a Chinese company cancelled its plans to acquire a 15% stake in Western Digital.
Western Digital stock is declining 4.12% to $44.20 this morning.
Unisplendour Corp. terminated the deal after the Committee on Foreign Investment in the U.S. decided to investigate the deal, Western Digital said in a statement.
The hard-disk drive maker remains committed to acquiring SanDisk and has offered shareholders $67.50 in cash and 0.2387 shares of Western Digital per share.
"We believe the strategic rationale for this acquisition is even more compelling today than when we first announced it in October last year given industry trends and strong execution by both companies," Western Digital CEO Steve Milligan noted in the statement.
The alternative offer is valued at $78.50 per share based on Western Digital's stock closing price on Monday, down from the previous proposal of $86.50 per share, according to Reuters.
Separately, SanDisk has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's strengths, such as largely solid financial position with reasonable debt levels by most measures and expanding profit margins, and its weaknesses, including generally disappointing stock performance, deteriorating net income and disappointing return on equity.
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