On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover bid from Micron Technological innovation (MU). The revised bid destinations the all-stock Trade offer you at all over $ten a share, up marginally from the First bid.
But major shareholders which includes billionaire investor Carl Icahn coupled with hedge cash and portfolio administrators have considered the initial bid to be inappropriate. Elliott Associates believes the Original bid “significantly undervalues Lexar,” and feels Lexar is worthy of among $1.5 billion and $two.4 billion. The estimate is well higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way way too small and has to be rejected by shareholders. Micron wants to spend http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 about 1.10x gross sales for Lexar although the industry leader SanDisk (SNDK) 정보이용료 is investing at 4.35x revenue. Lexar also provides a $400 million patent infringement lawsuit towards Toshiba that it experienced previously received but is currently issue to an charm by Toshiba.
Think about it this fashion, An effective $400 million settlement in favor of Lexar would equate to about $four.eighty three for each share in additional funds to include to The present $0.fifty four in absolutely free income soon after financial debt that Lexar has. This suggests Micron would spend a lot less than $five a share for Lexars property, which happens to be reduced.
You can find also speculation that SanDisk is significantly thinking of having a run at attaining Lexar. This might make sense considering the fact that SanDisk would solidify its Management position.
Furthermore, SanDisk has a detailed working partnership with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Remain tune. A Unique shareholder Assembly to critique the takeover bid has long been moved to June 16. In my perspective, the $10 bid undervalues Lexar. Concern is will a white knight area?