The US research firm says the talks with Samsung could harm M-Systems and Toshiba's working relationship.
Research firm Am Tech continues to radiate pessimism about Israeli flash memory technology company M-Systems Flash Disk Pioneers (Nasdaq: FLSH). Two days ago, Am Tech cut its recommendation for the stock to "Sell", with a $25 price target, following the announcement of Intel's entry into the NAND chip market.
Today, Am Tech's analysts report that one of M-Systems' main allies, Toshiba, which has cooperated on the development of the Israeli company's Mobile DiskOnChip (MDOC) technology since 2003, is in advanced talks for the licensing of Korean company Samsung's OneNAND technology.
Am Tech sees the fact that the partner in the development of MDOC is in talks on a rival technology as boding ill for future working relations between Toshiba and M-Systems.
M-Systems shares are down 3.27% so far in today's session, at $28.65, giving the company a market cap of $1.04 billion.
Published by Globes [online], Israel business news - www.globes.co.il - on November 23, 2005