(Reuters) – Micron Technology and Western Digital are in talks with SanDisk about a possible acquisition, Bloomberg reported.
SanDisk has hired a bank to explore a potential sale, Bloomberg reported, citing sources familiar with the matter.
No decision has been made and the talks may not result in a transaction, Bloomberg said.
Shares of SanDisk – which makes products for cloud computing, data centers, smartphones and laptops – rose 10.9% to $68.50 in extended trading on Tuesday (SNDK). Micron (MU) was up nearly 3% and Western Digital (WDC) under 1%.
SanDisk, Western Digital and Micron did not immediately respond to requests seeking comment.
SanDisk was valued at about $12.6 billion as of the stock’s close of $61.77 on Tuesday. The stock is down about 37% year-to-date.
The company has been grappling with a delay in sales of certain embedded parts used in solid-state drives, which are faster and more reliable than traditional hard disk drives.
Several companies would view SanDisk as a strategic asset, Nomura analyst Romit Shah said last week, adding he believed SanDisk would reject offers short of $90 per share.
China’s state-backed Tsinghua Holdings on Sept. 30 said it plans to buy a 15% stake in Western Digital.
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