On Friday, flash media maker Lexar Media (LEXR) been given a higher revised takeover bid from Micron Technological innovation (MU). The revised bid areas the all-stock Trade supply at all over $ten a share, up marginally in the Preliminary bid.
But main shareholders such as billionaire Trader Carl Icahn coupled with hedge cash and portfolio administrators have considered the Preliminary bid to become inappropriate. Elliott Associates thinks the initial bid “substantially undervalues Lexar,” and feels Lexar is really worth amongst $1.five billion and $two.four billion. The estimate is very well above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too reduced and should be turned down by shareholders. Micron wants to fork out around 1.10x sales for Lexar though the market chief SanDisk (SNDK) is trading at 4.35x sales. Lexar also provides a $400 million patent infringement lawsuit versus Toshiba that it experienced Earlier received but has become subject matter to an attractiveness by Toshiba.
Consider it by doing this, A prosperous $400 million settlement in favor of Lexar would equate to about $four.eighty three for every share in additional funds to include to The existing $0.54 in free funds just after https://en.wikipedia.org/wiki/?search=소액결제 credit card debt that Lexar has. This means Micron would pay a lot less than $5 a share for Lexars property, that is reduced.
There's also speculation that SanDisk is very seriously thinking of having a run at getting Lexar. This is able to make sense considering that SanDisk would solidify its Management position.
Also, SanDisk has a detailed working relationship with Toshiba, which could see SanDisk drop or lessen 소액결제현금화 the settlement if it managed to acquire Lexar.
Keep tune. A Particular shareholder Assembly to review the takeover bid is moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Dilemma is will a white knight floor?