Samsung has withdrawn its bid for memory card company SanDisk after the companies failed to make progress on long-running negotiations.
In a letter to SanDisk’s board of directors Samsung chief executive Yoon Woo Lee said he is disappointed the pair were unable to reach an agreement. He cited an increase in risk of SanDisk’s future trading as the reason for withdrawing.
“After nearly six months of efforts to pursue a transaction with no meaningful progress, we are withdrawing our proposal to acquire SanDisk,” said Lee in the letter.
“Your surprise announcements of a quarter billion dollar operating loss, a hurried renegotiation of your relationship with Toshiba and major job losses across your organization all point to a considerable increase in your risk profile and a material deterioration in value.”
SanDisk said it had been open to further negotiations but that Samsung wasn’t responsive, saying in a statement: “We believe this raises questions about the real motivations behind Samsung’s offer.”