To: Art Bechhoefer who wrote (32486 ) 6/13/2006 4:01:42 PM From: inaflash Respond to Regarding the rumor that Motorola might buy SNDK shares as an investment (which is different from buying a company outright), it would probably help Motorola stay competitive by providing them another profit center. More and more Motorola handsets come with a slot for trans flash (microSD), so why not invest in the company that's making all those flash cards and lower your own effective cost of those very cards? I find it a plausible scenario, but I doubt that Motorola would simply buy shares on the open market. Instead, they might engineer a deal whereby SNDK sells them new shares of preferred stock, exchangeable into common stock at a later date, somewhat similar to the last deal where SNDK sold convertible preferred bonds that can be profitably exchanged if the stock price recovers to somewhere near $80.
