Report: Toshiba makes move for SanDisk

SanDisk has already turned down a buyout offer from Samsung, and will likely have to deal with another company throwing money at it.

Over the weekend, Japanese media started reporting that Toshiba has officially offered $1 billion to purchase a joint fab venture from SanDisk.  The reported talks surround SanDisk’s only flash chipmaking facility, which is jointly owned by Toshiba and SanDisk.

SanDisk has not confirmed whether or not Toshiba is interested in purchasing a fab.

"SanDisk periodically has conversations with multiple parties, including Toshiba, 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."

While Samsung has drawn the interest of the U.S. Department of Justice, Toshiba, currently serving as the No. 2 flash memory maker, would most likely be able to get away with the buyout without facing the wrath of the U.S. government.

Toshiba and SanDisk have had a long-term working partnership that seemed to begin to unravel after Samsung’s public takeover bid.

If a deal between the two companies happened, the acquisition would negatively impact Toshiba in the short-term, mainly due to the slide in NAND flash memory price over the past few quarters.  In the April-September time period in 2008, Toshiba reported a 30 billion yen operating loss, which is the company’s first operating loss in five years.

SanDisk’s stock has declined more than $60 over the past two years due to sliding NAND flash prices.