Samsung Sets Sights on SanDisk

Both Samsung and SanDisk declined to confirm or deny the report. However, SanDisk's shares climbed more than 26 percent in morning trading Friday.

Pondering Options

"We are considering various opportunities regarding SanDisk but nothing has been decided," Samsung spokesperson James Chung said. He did not elaborate.

"SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities," SanDisk said in a statement. "We evaluate all of these opportunities, but maintain a policy of not commenting on market rumors or speculation."

The online paper Edaily reported on its Web site that Samsung chose J.P. Morgan as an adviser for the acquisition about one month ago, citing investment banking and semiconductor industry officials it did not identify.

J.P. Morgan in Seoul declined to comment.

Existing Relationship

Samsung currently supplies NAND flash memory chips to SanDisk, Chung said.

The Milpitas, Calif.-based company is the world's largest supplier of flash storage card products.

Samsung is the world's largest manufacturer of NAND as well as DRAM, or dynamic random access memory, chips.

NAND flash memory is used in digital devices such as cameras and music players. DRAM chips are used mostly in personal computers.

Collecting Chips

Samsung said last October that it purchased an Israeli developer of image sensors in its first acquisition in over a decade. Samsung bought Tel Aviv-based and privately held TransChip Israel and turned it into one of its research and development centers,

SanDisk shares climbed US$3.53, or 26.2 percent, to $16.99 in morning trading in New York. Shares in Samsung Electronics rose 2.5 percent to close Friday at 520,000 won ($465).