To read this article from Reuters, click on:
Samsung Elec mulls SanDisk buy; Toshiba shrs fall

Read also this one from the Wall Street Journal:
Samsung Weighs SanDisk Buy As Chip Makers Seek Mergers

Here is the answer of Sandisk: "No Comment":
In response to media reports, SanDisk Corporation has issued the following statement: “SanDisk periodically has conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities. We evaluate all of these opportunities, but maintain a policy of not commenting on market rumors or speculation.”