Samsung formally withdrew its offer to acquire SanDisk at $26 per share in a letter issued just after midnight Tuesday, saying that because of “growing uncertainties in your business, which may continue to deteriorate in this difficult economic environment … we are no longer interested in acquiring SanDisk at $26 per share.” Although Samsung Electronics had made efforts to pursue an acquisition with SanDisk Corporation for last six months, both parties have not been able to reach an agreement.
The decision was made in considerations of the growing uncertainties in SanDisk’s business, its stand alone value, and the current difficult economic environment. Although Samsung refused to speculate on whether it might renew its bid, presumably at a lower price, analysts believe that is possible. Cancellation of the deal could also prompt Toshiba, which is closely aligned with SanDisk in manufacturing, to play a larger role in the future of its industrial ally.
