(LEAD) SanDisk rejects Samsung's takeover offer

(ATTN: UPDATES with more details of offer in para 5, Samsung's share price in para 7)

SEOUL, Sept. 17 (Yonhap) -- Samsung Electronics Co., the world's largest maker of
computer memory chips, said Wednesday it had made a US$5.85-billion proposal to
purchase SanDisk Corp., but the offer was later rejected .

Samsung offered $26 in cash for each of the total 2.25 million shares of SanDisk,
the world's largest producer of flash memory chips used in digital cameras and
mobile phones, the South Korean company said in a regulatory filing.

SanDisk said in its own separate statement that it had rejected the offer based
on the board's view that the offer appeared "opportunistic" and
undervalues the company.

According to Samsung, the two parties are continuing with consultations, though
nothing has yet been officially decided.

Samsung's offer represents an 80-percent premium on the price of SanDisk shares
as of the close of Monday's trading in the U.S. bourse.

The deal, if pushed through, would help Samsung widen its lead over Toshiba Corp.
in the $15 billion flash memory chip market.

Samsung shares were up 2.1 percent at 536,000 won as of 11:49 a.m. on the Seoul
bourse.

SanDisk owns a number of patents related to flash memory chips, and Samsung has
paid some $352 million annually in patent fees to the U.S. company.

odissy@yna.co.kr

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