WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.00

-0.4%

3:59 PM EST

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To: Binx Bolling who wrote (13957)	8/16/2000 11:27:52 AM
From: Ausdauer	Read Replies (4) of 60323

Binx, Toshiba is a major supplier of NAND to Lexar. Toshiba invested a small amount money in 1997 in Lexar. The information you posted regarding the consigment arrangements look like a business relationship to me, not necessarily an act of consanquinety. The 3 million shares that Toshiba owns may be related to the original 1997 investment that I mentioned in prior posts. At that time the current owners of Simple Technology were running the show at Lexar Media. As you know, Simple sold the remaining shares to the employees of Lexar Media in 1998 and have not had a business association since then. The Toshiba shares in LEXR appear only to be a vestige of this early investment. This antedates the legal wranglings with Lexar that surround the SanDisk IP. Right now there are 55 million or so LEXR common shares outstanding. Let's see what happens to the stock price when these are unleashed on the market. I suspect there are a lot of LEXR employees that are chomping on the bit to unload shares before the other Hush Puppy falls. Lexar would do well to offer SanDisk a settlement and a construct a licensing agreement now that the IPO is done. I suspect that the information as presented in the registration statement (relating to a design around) will prevent this. SanDisk could use an injunction to try to force a settlement or licensing agreement. An injunction would be extremely harmful to LEXR's stock price, to LEXR's business for the near and intermediate term, and would jeopardize their $10 million L.O.C. I think that it is sad that LEXR didn't reach a fair settlement/licensing agreement with SanDisk before the stakes got to be so high for them. Ausdauer

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