The world's No. 2 chipmaker, Samsung Electronics Co. Ltd., says it
may acquire SanDisk Corp., the world's largest supplier of flash storage card products. Lehman Brothers Holdings Inc. estimates show Samsung already pays $400 million to $500 million annually to use Milpitas, Calif.'s SanDisk's flash memory patents, which could be reason enough to justify the acquisition, a Bloomberg report noted.
While considering options for a tie-up with SanDisk, analysts say South Korea's Samsung may
vie for control of SanDisk with suitors in the U.S. and Japan, the TimesOnline.com reports. A purchase price could be as much as $3 billion.
Bloomberg also pointed out that Samsung competitor Toshiba Corp. said in February it would partner with SanDisk and spend more than ¥1.7 trillion ($16 billion) to build two semiconductor plants. If the acquisition occurs, Toshiba may be forced to invest in chip factories on its own.
The news sent SanDisk shares up more than 22% in premarket trading on the Nasdaq, to $16.51, still way off a 52-week high of $56.46. Toshiba shares fell to their lowest point since 2005. -
Baz HiralalSee the story from Bloomberg.comGo to the story from TimesOnline.com
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