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SanDisk is said to be in acquisition talks

October 13, 2015

Sandisk's new portable solid state drives are displayed at the Sandisk booth during the 2015 Computex exhibition at the TWTC Nangang exhibition hall in Taipei, TaiwanSandisk's new portable solid state drives are displayed at the Sandisk booth during the 2015 Computex exhibition at the TWTC Nangang exhibition hall in Taipei, Taiwan

(Reuters) – Micron Technology and Western Digital are in talks with SanDisk about a possible acquisition, Bloomberg reported.

SanDisk has hired a bank to explore a potential sale, Bloomberg reported, citing sources familiar with the matter.

No decision has been made and the talks may not result in a transaction, Bloomberg said.

Shares of SanDisk – which makes products for cloud computing, data centers, smartphones and laptops – rose 10.9% to $68.50 in extended trading on Tuesday (SNDK). Micron (MU) was up nearly 3% and Western Digital (WDC) under 1%.

SanDisk, Western Digital and Micron did not immediately respond to requests seeking comment.

SanDisk was valued at about $12.6 billion as of the stock’s close of $61.77 on Tuesday. The stock is down about 37% year-to-date.

The company has been grappling with a delay in sales of certain embedded parts used in solid-state drives, which are faster and more reliable than traditional hard disk drives.

Several companies would view SanDisk as a strategic asset, Nomura analyst Romit Shah said last week, adding he believed SanDisk would reject offers short of $90 per share.

China’s state-backed Tsinghua Holdings on Sept. 30 said it plans to buy a 15% stake in Western Digital.

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