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SanDisk Spurns Samsung's $5.8B Offer

Flash vendor SanDisk has rejected Samsung's "opportunistic" attempt to acquire the company for $5.8 billion, accusing the electronics giant of exploiting current market conditions.

"It is an opportunistic attempt to take advantage of SanDisk's current stock price, which is significantly depressed," wrote the SanDisk board of directors, in a letter published last night. The proposal "significantly undervalues SanDisk given the longer-term prospects of our business and does not reflect the substantial synergies Samsung can obtain from the proposed acquisition."

Media reports earlier this month suggested that SanDisk was a target for Samsung. But SanDisk's board clearly feels that the Korean electronics giant's $26 per share offer is much too low.

SanDisk's letter explained that Samsung first approached the company on May 22, indicating that they could be willing to pay a premium to the firms $28.75 closing price on that day. SanDisk's shares were trading at $21.12 this afternoon, $6.11 (40.62 percent) higher than today's opening price.

"We believe Samsung's proposal does not provide appropriate value to our stockholders and is opportunistically timed at the trough of our industry-wide downturn," said Eli Harari, the SanDisk CEO, in a statement. "We believe we have the strategy, execution record, innovation, and financial resources to return to profitable growth."

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