Samsung Electronics Withdraws Acquisition Bid

Samsung Electronics withdraws a $5.9 billion proposal to acquire all the outstanding shares of flash memory card maker SanDisk Corporation. Although Samsung Electronics had made efforts to pursue an acquisition with SanDisk Corporation for last six months, both parties have not been able to reach an agreement. The decision to withdraw the proposal to acquire SanDisk Corporation at $26 per share was made in considerations of the growing uncertainties in SanDisk's business, its stand alone value and the current difficult economic environment. According to Reuters, buying SanDisk would have given Samsung advanced technology and a tighter grip on its market dominance as smaller rival Toshiba Corp is challenging its position. A Samsung spokesperson also told Reuters that it would still consider joint ventures or alliances at home and abroad to foster growth. "We will continue to evaluate all options available, including strategic alliance and business combinations and other initiatives, that serve the interest of company shareholders," says James Chung for Samsung.