On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from http://www.thefreedictionary.com/소액결제 Micron Engineering (MU). The revised bid spots the all-stock exchange supply at around $ten a share, up marginally through the First bid.
But main shareholders which includes billionaire investor Carl Icahn in conjunction with hedge funds and portfolio administrators have considered the 정보이용료 initial bid to be inappropriate. Elliott Associates thinks the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is value amongst $one.five billion and $two.4 billion. The estimate is effectively earlier mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too low and should be rejected by shareholders. Micron hopes to spend all around one.10x income for Lexar while the market leader SanDisk (SNDK) is buying and selling at four.35x profits. Lexar also contains a $four hundred million patent infringement lawsuit towards Toshiba that it experienced Earlier gained but is now issue to an appeal by Toshiba.
Think it over this fashion, a successful $400 million settlement in favor of Lexar would equate to around $four.eighty three per share in supplemental money to incorporate to the current $0.54 in cost-free cash immediately after financial debt that Lexar has. This implies Micron would pay out a lot less than $5 a share for Lexars assets, which happens to be very low.
There's also speculation that SanDisk is seriously thinking about taking a operate at acquiring Lexar. This may seem sensible since SanDisk would solidify its Management place.
Moreover, SanDisk has a close Functioning romance with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Stay tune. A Unique shareholder Assembly to assessment the takeover bid is moved to June 16. In my view, the $ten bid undervalues Lexar. Issue is will a white knight surface area?