SanDisk posted a wider-than-expected quarterly loss and said it would slash costs and sell some equipment to Toshiba in a bid to boosts its finances.

SanDisk was forced to take these steps because a glut of flash memory chips in the market drove down prices, hurting its revenue. The economic downturn, which has reduced demand for flash-based consumer gadgets such as digital cameras and portable music players, is also exacerbating the losses.

SanDisk's shares have lost 55 percent of their value this year and are currently trading well below the $26-a-share offer Samsung made public Sept 16. SanDisk rejected the offer.

On Wednesday, SanDisk Chief Executive Eli Harari reiterated the company's board remains steadfast about getting a higher price from Samsung.

The unsolicited, $5.85 billion offer fails to recognize the "intrinsic" value of SanDisk's intellectual property, Harari said on a conference earnings call. He added the two companies have not talked since letters exchanged were publicly disclosed.

By: DocMemory
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