WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 174.21

+6.9%

3:59 PM EST

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To: SiliconAlley who wrote (59888)	2/17/2016 12:30:15 PM
From: Art Bechhoefer	2 Recommendations Recommended By david1951 joncon63 Read Replies (1) of 60323

I think we are in agreement, even though it sounds like we differ. If the Unisplendour transaction does NOT occur before closing the deal (implying that the WDC-SNDK acquisition takes place at $67/share for SNDK), then Unisplendour has no claim on the SNDK technology unless it buys a majority position in WDC. As I indicated earlier, my theory has always been that China wants to buy key technologies that it has been unable to develop on its own, creating its own proprietary technology and incorporating that technology into future devices made for both home consumption as well as export. The cheapest way to buy NAND flash memory technology and all its variants is to buy SanDisk because SanDisk owns the technology, not the fab facilities that use the technology. Those facilities are owned by Toshiba. So the purchaser of SanDisk gets the technology without having to pay for the bricks and mortar. That is why I think the deal goes through at $86.50/share of SNDK. I have also expressed a similar view on the recent article published by SeekingAlpha, in the comments under the name "Experienced." Art

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