Citing SanDisk's "rapidly declining prospects," Samsung has withdrawn its hostile takeover bid. In a letter just released by Vice Chairman and CEO Lee Yoon-woo, Samsung writes, "After nearly six months of efforts to pursue a transaction with no meaningful progress, we are withdrawing our proposal to acquire SanDisk." The letter then turned a shade more nasty with this:
"Your surprise announcements of a quarter billion dollar operating loss, a hurried renegotiation of your relationship with Toshiba and major job losses across your organisation all point to a considerable increase in your risk profile and a material deterioration in value, both on a stand-alone basis as well as to Samsung."Analysts will remind you that the move does not mean that Samsung has abandoned its quest for SanDisk entirely. However, further action in the current economic climate seems unlikely give the Korean governments warning against major overseas mergers and acquisitions. Besides, just who is SanDisk? Can it really be trusted after being seen palling around with slotMusic?
Update: SanDisk just responded by blaming Samsung for the breakdown in negotiations while questioning its intentions. SanDisk then pivoted abruptly on heel and pretended to freshen-up its makeup while sneaking a wanton look back at Samsung in the reflection of its shareholder discontent. At least that's our read on the matter.