Samsung Walks Away From SanDisk Deal

Samsung says there is now no chance of buying SanDisk
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NEW YORK (

TheStreet

) -- Korean electronics giant

Samsung

has finally drawn a line under its attempt to purchase chipmaker

SanDisk

(SNDK)

.

Samsung confirmed that it is no longer planning to pursue the acquisition in a filing with the Korea Exchange, according to

Reuters

, effectively ending the long-running

M&A

saga between the two companies.

Shares of SanDisk took a pounding earlier this week, possibly in anticipation of Samsung's decision. Despite a recent rebound in its business, SanDisk's stock closed at $16.99 Thursday, well below its 52-week high of $23.50.

Samsung launched a

$5.85 billion bid

to

buy

SanDisk last year, but

withdrew

the offer amid uncertainty in the Flash memory market and resistance from SanDisk.

Despite SanDisk's insistence that Samsung's offer undervalued the company, the two firms have maintained their longstanding partnership, and the door was left open for future negotiations. Earlier this year, for example, SanDisk clinched a

much lower cost

technology

licensing

agreement with Samsung, much to the delight of its investors.

The agreement had been set to expire in August, and was seen as removing the risk of future litigation between the two firms.

After withstanding the vagaries of the global economic slowdown, the chip sector is

raising hopes

for a tech recovery, with help from recent comments from

Intel

(INTC) - Get Report

,

Dell

(DELL) - Get Report

and

Marvell

(MRVL) - Get Report

.

SanDisk has also enjoyed a rebound in its business. The

flash memory

manufacturer beat analysts' estimates in its recent

second-quarter

results, buoyed by increased prices, higher royalty revenue and strong execution.