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John123 in Mergers & Acquisitions,

WDC/SNDK Merger. What to buy?

Computer data storage company Western Digital said Wednesday it had agreed to buy flash memory device maker SanDisk for roughly $19 billion. Under the terms of the cash-and-stock deal, Western Digital will pay $86.50 for each share of SanDisk, a 15 percent premium to SanDisk's closing price on Tuesday.

The deal is subject to shareholder and regulatory approval, according to the company, which said it expected it to close in the third quarter of 2016.

Western Digital posted net income of $1.47 billion for the fiscal year that ended on July 3, down 9.4 percent from the previous 12-month period, while net revenues came in at $14.57 billion, a decrease of 4 percent.

The Irvine, California-based data storage giant's share price slid 4.57 percent on Wednesday and has fallen 35 percent since Jan. 1, while Milpitas, California-based SanDisk's share price, which has slumped 22 percent since the start of the year, rose 2.11 percent.

I think it is possible to buy both stocks. SNDK has 15% potential and WDC not too far from closing September gap. If I will see prices around $70 I will buy WDC as well.