Samsung mulls SanDisk bid

 

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Posted on 5 Sep 2008 at 11:06

Samsung has taken the first steps towards an acquisition of flash memory maker SanDisk.

According to reports, Samsung has hired consultancy JPMorgan Chase & Co to advise as it plots the purchase of the world's largest flash memory card maker.

Any such union would likely be fraught with competition complications given the size of the two companies and their potential hold on the flash memory market.

The news is also likely to rouse Seagate which is said to be mulling a bid for either the company as a whole, or just its solid state disk unit. Any such deal would give Seagate a significant foothold in the memory card and MP3 player business, allowing it to expand beyond its traditional markets.

Neither Samsung nor Seagate are responding to requests for comment, though SanDisk has issued the following statement.

"SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities. We evaluate all of these opportunities, but maintain a policy of not commenting on market rumors or speculation."

Author: Stuart Turton