SanDisk and Western Digital in Advance Talk for a Takeover Deal
People who are familiar with the matter said that, SanDisk Corp. is discussing to sell itself to Western Digital Corp. with talks that seem to be moving towards an agreement. According to the source, the storage makers may strike a deal as soon as the current week.
The people said that the price range being discussed by Western Digital is somewhere in-between $80 to $90 a share of SanDisk.
On Monday, SanDisk shares closed at $72 in New York trading. However, there is no certainty that the deal will work out and could still fall apart. The sources said that during the weekend, talks accelerated regarding the deal.
Milpitas, California based SanDisk’s shares scaled up almost thirteen percent during extended trading. On Monday, at the closing bell in New York, the company’s market capitalization was approximately $14.7 billion. Its shares have gone up by sixteen percent or more since it was reported on October 13, that the company is exploring options of a sale.
SanDisk is among the biggest makers of flash memory which is a kind of chip that is used as storage device in mobiles, computers and data centers.
Western Digital got a $3.8 billion investment in the previous month from Tsinghua University of China which helped it gather funds for new takeover deals.
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