Fusion-io slips after detailing non-SanDisk talks


Before agreeing to SanDisk's (SNDK +0.9%) $11.25/share offer, Fusion-io (FIO -2.2%) talked to 11 potential acquirers in total, SEC filings indicate.

Two of the potential acquirers, referred to as Party A and Party F, withdrew from talks in May after showing initial interest. SanDisk showed initial interest last October, halted talks in December, and came back to the table in May before closing a deal (after securing a discount?).

A SanDisk exec: "There were a lot of things that we were assessing ... Fusion-io was certainly one option in meeting our business goals, but not the only option."

Meanwhile, Fusion-io COO Lance Smith talks up the value of pairing his company's PCIe server flash IP with SanDisk's NAND fabs, "Having access to the fab and suiting the fab output to the business at hand gives you significant leverage in the marketplace."

Fusion-io shares fell $0.26 today in response to the filings. They're now $0.11 above SanDisk's offer price.

Previous: Street applauds SanDisk/Fusion-io's price, synergies

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  • myoption
    , contributor
    Comments (6) | Send Message
     
    Question, how long typically will it take for the FIO sale to complete?
    26 Jun 2014, 10:40 AM Reply Like
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