SanDisk (SNDK) Smashed After Pulling A 'Yahoo'

Shares of SanDisk (Nasdaq: SNDK) are getting slammed 29% today after the company pulled a 'Yahoo' and Samsung withdrew its $26 bid for the company. If you remember, Yahoo! saw a similar fate after the Microsoft deal fell apart.

In September Samsung announced the $26 bid for SanDisk, but today they said, due to the deterioration in SanDisk's business and its inability to reach an agreement, they're walking away from the offer. Samsung was also critical of "a hurried renegotiation of your relationship with Toshiba." From the wording of Samsug's letter it appears they may be interested in a SanDisk deal at a lower price.

SanDisk said Samsug consistently chose to ignore a clear path toward merger discussions.

With shares of SanDisk trading at $10.32 today it represents a 60% discount to the $26 offer price - OUCH!

Commenting on the news, Doug Freedman of American Technology Research said, "we continue to see significant benefits to Samsung should the company re-ignite its interest in SNDK, both from an IP consolidation and industry capacity consolidation standpoint." He continues to rate SanDisk at Neutral with an $18 price target.

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