On Friday, flash media maker Lexar Media (LEXR) received a greater revised takeover bid from Micron Technology (MU). The revised bid places the all-inventory Trade present at around $ten a share, up marginally from the Preliminary bid.
But significant shareholders such as billionaire investor Carl Icahn as well as hedge resources and portfolio administrators have considered the initial bid to get inappropriate. Elliott Associates believes the initial bid “drastically undervalues Lexar,” and feels Lexar is value involving $one.five billion and $2.four billion. The estimate is properly above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well lower and must be turned down by shareholders. Micron hopes to fork out about one.10x profits for http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 Lexar whilst the marketplace chief SanDisk (SNDK) is buying and selling at 4.35x gross sales. Lexar also contains a $four hundred million patent infringement lawsuit from Toshiba that it experienced Beforehand received but is now issue to an enchantment 소액결제정책 by Toshiba.
Think it over in this way, a successful $four hundred million settlement in favor of Lexar would equate to all-around $four.83 per share in additional dollars so as to add to The existing $0.54 in no cost hard cash after credit card debt that Lexar has. What this means is Micron would fork out less than $five a share for Lexars belongings, which is very low.
There may be also speculation that SanDisk is significantly considering taking a operate at acquiring Lexar. This is able to make sense considering that SanDisk would solidify its leadership situation.
In addition, SanDisk has an in depth Functioning romantic relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Keep tune. A Exclusive shareholder meeting to evaluation the takeover bid has long been moved to June sixteen. In my watch, the $ten bid undervalues Lexar. Issue is will a white knight surface area?