Key Western Digital Shareholder Urges Cancellation Of SanDisk Merger

announced back in October that it will acquire

for $86.50 per share. Related Link:

On Monday, The Wall Street Journal

that Alken Asset Management, a hedge fund that counts itself as one of Western Digital's largest shareholders, plans on voting against the deal. The hedge fund is expected to vote against Western Digital's stock issuance the company needs to complete the transaction. The Wall Street Journal added that Alken Asset Management sent a letter Western Digital's Board which the publication obtained and reviewed. The letter cites SanDisk's lowered outlook since the acquisition was announced. Alken Asset Management isn't known for using an activist style tactics but its opposition to the deal nevertheless raises concerns over the potential transaction. Shares of Western Digital were trading higher by more than 3.50 percent at $45.75 late Monday morning while shares of SanDisk were lower by more than 1.50 percent at $67.77.