Samsung, Toshiba Queue Up To Buy Solid State Memory Specialist Sandisk

Samsung, the largest NAND Flash memory supplier around, publicly come forth with a USD26 per share offer for Solid State memory specialist Sandisk, valuing the company at around USD 5.85 billion.

Sandisk has already said no to the offer saying that Samsung “significantly undervalues SanDisk given the long-term prospects of its business”.

Toshiba and Seagate have also expressed their interest in the memory pioneer and it wouldn't be surprising that the three parties come up with competing bid to snap up not only patents, experience and technology, but also the confidence that you would pull the plug on some of your rivals.

Japanese Consumer Electronics manufacturer Toshiba would probably be the worst hit should Samsung acquire Sandisk. The number two memory manufacturer has a solid partnership with Sandisk which would possibly disappear overnight.

Samsung currently occupies 42.3 percent of the NAND flash memory market compared to 27.5 percent for Toshiba and 13.4 percent for Korean Hynix semiconductors.

Sandisk shares have tumbled down heavily over the past year with prices falling to USD 15, a quarter of their 52-week high, so it would make economical sense for either of the suitors to acquire Sandisk now.

NAND flash technology has made its way into the majority of mainstream appliances, from MP3 players to digital cameras and is bound to become even more pervasive as solid state devices gradually replace hard disk drives throughout the IT industry.