SanDisk shares hop as it reportedly edges closer to a sale

SanDisk shares jumped 5 percent on Tuesday with word that the semiconductor company had entered into advanced negotiations on a deal to sell itself.

Western Digital is in advanced discussions to buy Milpitas-based SanDisk, according to a report by Bloomberg News. SanDisk is pondering a sale price of $80 to $90 a share and leaning toward an all-cash offer. The deal could close this week, Bloomberg said, although its sources said the deal could still fall through.

SanDisk is one of the leading manufacturers of flash memory devices, a type of chip that’s used for data storage in mobile devices.

SanDisk has held sales discussions with both Western Digital and Micro Technology. None of the companies involved in the discussions are commenting about the situation.

In September, Western Digital landed a $3.8 billion investment from China-based Tsinghua University to bankroll the company’s ability to make acquisitions.

The $300 billion semiconductor industry, confronted by slumping sales for personal computers, is increasingly eyeing consolidation to cope with the shifting marketplace.

Sunnyvale-based PMC-Sierra is the purchase quarry in a bidding war between rival suitors Microsemi and Skyworks Solutions.

Photo: SanDisk headquarters in Milpitas. (Bay Area News Group)

 

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