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Western Digital ( WDC ) shareholders likely will approve the company’s $19 billion offer to acquire SanDisk ( SNDK ), says RBC Capital Markets. The vote among Western Digital shareholders is set for March 15. A definitive agreement between the two companies was reached on Oct. 21. “Given our analysis of the top 20 Western Digital shareholders and our discussions with a large number of investors, we think the probability is higher the deal gets approved vs. not,” wrote RBC analyst Amit Daryanani in a research note Monday. He said 15 of the top 20 Western Digital shareholders also own SandDisk stock, making the potential approval likely. The deal came into question late last month, when China-based conglomerate Unisplendour canceled plans to acquire a 15% stake in the disk drive maker for about $3.8 billion, on fears U.S. regulators would scuttle the deal due to national security concerns. Western Digital plans to acquire SanDisk, a leading provider of flash-memory chips used in smartphone and tablets, in a cash-and-stock transaction that was valued at $86.50 a share, or about $19 billion, when the deal was announced. After the Chinese investor pulled out, Western Digital went to its alternative offer, which it says values SanDisk at $78.50 a share. Western Digital anticipates seeing $500 million in total cost synergies, not including tax savings, from the acquisition. Daryanani rates Western Digital stock outperform, with a price target of 68. Western Digital stock was up more than 3%, near 50.50, in midday trading Monday, but its shares were near 72 when it announced the pending acquisition. SanDisk stock was up nearly 1%, near 76.50, in midday trading in the stock market today . Image provided by Shutterstock . Scalper1 News
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