Summary
What is going on here? Samsung is working in their shareholders' best interests, as is SanDisk. In the end, the separation between these two interests is thwarting meaningful progress in negotiations. Objective Analysis, in its Alerts, has outlined the impact this should have on each company. We do not anticipate the consummation of this deal before the memory market returns to profitability in mid-2009. See: http://www.Objective-Analysis/Reports
Analysis
The ongoing melodrama has been the subject of a number of Objective Analysis Alerts posted HERE. After Samsung's initial open letter to SanDisk's board, with an offer to purchase SanDisk shares at nearly double the price, SanDisk communicated their opinion that this did not reflect a fair valuation for the company. After a subsequent move by SanDisk that raised several questions, Samsung withdrew their offer, sending SanDisk's shares from over $20 to below $8.00.
SanDisk's strong IP position, coupled with the fact that the company is extremely well managed, has best-of-class manufacturing, is a predominant force in consumer electronics, and has a visionary outlook, combine to give Objective Analysis every reason to expect that the company will still be a major force in flash by the time the NAND flash market returns to profits in the second half of 2009
