SanDisk rejects Samsung's $5.8B offer

SEOUL, Sept. 18 (UPI) -- U.S. flash memory maker SanDisk Corp. rejected a $5.8 billion bid by South Korean giant Samsung Electronics Co.

The company, however, did not appear averse to a higher bid, the Financial Times reported.

SanDisk CEO Eli Harari was quoted as saying in a letter to Samsung head Yoon-woon Lee the $26-a-share, all-cash bid was "opportunistically timed at the trough of an industry-wide downturn," but added the board was "open-minded about a transaction that appropriately addresses the issues of value, deal certainty and process."

SanDisk is a leading maker of flash memory chips used in products such as digital cameras and mobile phones. The company owns several patents for which Samsung, the world's largest chip maker, has paid about $350 million annually in fees, other reports have said.

There was speculation among analysts about whether Japan's Toshiba, a Samsung rival, would make an offer as a white knight, the Times reported. Samsung could also raise its offer or take the bid directly to shareholders.

Toshiba currently is involved in a chip production joint venture with SanDisk.