SanDisk Rallies As Takeover Rumors Resurface

SanDisk (SNDK) shares are on the rise on rumors that Toshiba might be planning a bid for the company, according to Dow Jones Newswires . the two companies have a joint venture to manufacture NAND flash memories, and Toshiba has been often rumored to be a logical partner for the flash memory chip maker. In October, Samsung withdrew a $26-a-share bid for SanDisk ; there was speculation before Samsung pulled its offer that Toshiba might serve as a white knight for SanDisk. When this concept came up back in September, some analysts noted that Toshiba didn’t have the financial resources to complete a bid for SanDisk, given an already highly leveraged balance sheet. The Dow Jones story quotes several analysts who today reached the same conclusion. “Toshiba can’t afford them,” Needham analyst Edwin Mok told the wire service. SNDK today is up $1.59, or 22.1%, to $8.80. (link)