Samsung has launched a hostile takeover for SanDisk following a breakdown of negotiations.
According to Samsung, the two companies have been in talks regarding a potential takeover for four months but have failed to reach an agreement as SanDisk continued to "cling to unrealistic expectations on both its standalone market value and an appropriate merger price."
As a result the company has launched a $5.8 billion cash-only offer for the flash memory maker, equating to $26 per share.
However, in an open letter SanDisk's board has unanimously rejected the offer, claiming its suitor had previously indicated a willingness to pay as much as $28.75 per share, valuing the company at $6.47 billion.
SanDisk described the current offer as "an attempt to gain leverage in the ongoing licensing negotiations between the companies, particularly in light of the fact that the parties have met over ten times on this issue since June 2007."
In its response Samsung reiterated its desire to gain access to due diligence information, including SanDisk's "relationship with Toshiba, forecasted operating plans, R&D projects, technology roadmaps, key employees and pending litigation."
With the offer lodged, Samsung must now wait to see if any other companies express an interest, with Seagate widely tipped to enter the fray.
