Samsung Extends Its Cash Offer to AST for Third Time

For the third time, Samsung Electronics Co. Ltd. extended its cash tender offer for all shares of computer maker AST Research Inc. that the South Korean company doesn’t already own.

The offer for the nearly 27.8 million shares--or 88% of the remaining stock Samsung doesn’t yet own--will now expire Aug. 8.

During the 1980s, AST was one of the fastest-growing high-tech companies in the world. But by the early ‘90s, AST began to stumble badly. Samsung rescued the Irvine company with a $378-million cash infusion in 1995. Since then, it has taken control of AST’s board of directors and installed Samsung-affiliated executives in top positions.

Samsung Electronics said Tuesday that it is extending its offer, $5.40 per share, to allow additional time to receive clearance for the deal from the government of the Republic of Korea. Samsung, the world’s largest producer of memory chips, already owns 49% of the Irvine company.

“We’ve received approval from the Federal Trade Commission and the European Commission. The South Korean government has requested additional documents, and it’s taken quite a bit of time to pull it all together,” said Dan Sheppard, vice president of global corporate marketing for AST.

On May 19, Samsung had extended its initial offer to June 17. Then, it bumped the date back to July 1. The company said it is possible that the Aug. 8 deadline could be postponed a fourth time, depending on whether the South Korean government has made a decision on the pending offer.

On Tuesday, AST stock closed at $5 a share, down 12.5 cents.