Samsung withdraws offer to buy SanDisk

From CNET News.com: "After nearly six months of efforts to pursue a transaction with no meaningful progress, we are withdrawing our proposal to acquire SanDisk," Yoon Woo Lee, vice chairman and CEO at Samsung Electronics, said in a letter that Samsung released Wednesday in Seoul.

"I am disappointed that we have been unable to reach an agreement on our proposal. I continue to believe that a combination of our two companies would have created a superior global brand, an unparalleled technology platform and the scale and resources to drive convergence in the marketplace," he said. "Had we been able to execute on our proposal, your shareholders would have received full, fair and certain value for their shares."

The latter point in the letter was a bone of contention for SanDisk. SanDisk CEO Eli Harari reiterated Monday that the offer of $26-per-share was far from adequate.

"Samsung significantly undervalues (SanDisk) in light of the value of our IP (Intellectual Property) to Samsung," Harari said. "Samsung stands to gain enormous value from owning our patents and our know-how."

Samsung, in an apparent response to this, said: "We have obligations to our own shareholders...(that) requires that we squarely face the growing uncertainties in your business, which may continue to deteriorate in this difficult economic environment and further impact your standalone value."

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