Samsung Walks Away From SanDisk Deal
NEW YORK (
) -- 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
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
to
SanDisk last year, but
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
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
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
manufacturer beat analysts' estimates in its recent
results, buoyed by increased prices, higher royalty revenue and strong execution.
