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Samsung to buy Sandisk?

It's not yet clear how serious the talks are, or whether the two parties involved could overcome substantial antitrust and other regulatory concerns that would likely arise, but just the word that Korean memory chip maker Samsung Electronics is mulling a purchase of SanDisk Corp -- a deal that would be valued at about $3.2 billion -- is generating excitement. Investors and industry watchers say such a move could be a stroke of genius by Samsung in knocking down its archrival Toshiba Corp.

Japan's Toshiba, currently second behind Samsung in the flash memory chip market, is planning to double its chip production through a partnership with SanDisk, so an acquisition of the company, especially from the market leader, would raise the stakes.

Of course, the deal's not done yet. Following reports in a Korean newspaper on Friday, Samsung acknowledged in a statement, and later in a regulatory filing, that it was lookig at SanDisk as part of a review of various options. But such cross-border deals can be tricky to complete. And analysts noted that the news leak so early in the process doesn't help Samsung.

Continue reading at TechConfidential.com.

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