On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technologies (MU). The revised bid spots the all-stock exchange supply at around $ten a share, up marginally through the Original bid.
But main shareholders including billionaire Trader Carl Icahn in conjunction with hedge resources and portfolio administrators have considered the First bid to be inappropriate. Elliott Associates thinks the initial bid “significantly undervalues Lexar,” and feels Lexar is well worth among $one.5 billion and $2.4 billion. The estimate is properly higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well minimal and really should be rejected by shareholders. Micron wishes to pay out about 1.10x sales for Lexar while the market leader SanDisk (SNDK) is buying and selling at http://www.thefreedictionary.com/소액결제 four.35x gross sales. Lexar also has a $four hundred million patent infringement lawsuit towards Toshiba that it had Earlier gained but is now subject to an attractiveness by Toshiba.
Give it some thought this fashion, a successful $four hundred million settlement in favor of Lexar would equate to about $4.eighty three per share in added dollars to add to The existing $0.fifty four in cost-free income right after credit card debt that Lexar has. This means Micron would pay a lot less than $5 a share for Lexars assets, which is minimal.
There may be also speculation that SanDisk is seriously thinking of having a run at obtaining Lexar. This may make sense because SanDisk would solidify its leadership situation.
In addition, SanDisk has a close Performing relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to obtain Lexar.
Remain tune. A Specific shareholder Conference to evaluation the takeover bid is moved to June 16. In my perspective, the $ten bid undervalues Lexar. Query is will 소액결제현금화 a white knight surface area?