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September 22, 2008

Samsung SanDisk takeover is not a sure thing!!

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Jerald Kolansky
Worldwide VP of Sales, Plx Technology, Inc.
Implications: 1. If Samsung is successful in taking over SanDisk they will become the dominant player in the NAND flash business . 2. Samsung will gain a strong retail presence in flash products which it does not enjoy today.  This includes carfds, memory sticks, USB thumb drives, etc.

Analysis: 1. The SanDisk management probably does not want to sell.  They have worked long and hard at establishing themselves as the retail leader in NAND flash.  They are probably looking for a price over $30.

2. It is not clear that regulators would approve this merger since it would give Samsung an almost monopolistic market share.

3. Samsung would have to overcome obstacle of Toshiba which jointly owns fabs with SanDisk


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