Unisplendour shelves stake purchase in Western Digital
Print Edition
WESTERN Digital Corp said China’s Unisplendour Corp backed out from buying a stake in the hard-disk maker, forcing the US company to cut the price of its proposed offer for rival SanDisk Corp by 9 percent.
Unisplendour, a unit of China’s state-backed Tsinghua Holdings Co, had said in September that it would buy a 15 percent stake in Western Digital for US$3.78 billion.
The Chinese firm scrapped its investment plan after a decision by the Committee on Foreign Investment in the United States (CFIUS) to investigate the deal, Western Digital said.
SanDisk did not reply to requests for comment.
Western Digital affirmed its commitment to buy SanDisk yesterday, the day after shareholder Alken Asset Management asked the company to drop the deal, saying the price was too high.
Western Digital, which reached a deal to buy SanDisk for US$19 billion in October, had said then that it would revise the cash-and-stock offer if the Unisplendour investment fell through.
Based on Western Digital’s Monday close, the company said it would now pay US$78.50 per share in cash and stock for SanDisk, compared with its previous offer of US$86.50.
Western Digital said it has got regulatory nods for the SanDisk deal from the US and European Union.
CFIUS, an inter-agency panel led by the Treasury Department, assesses potential mergers to ensure they do not endanger national security. The CFIUS’ objections have created roadblocks for some Chinese deals.
Fairchild Semiconductor rejected an offer from China Resources Microelectronics Ltd and Hua Capital Management Co this month.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
