On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Technologies (MU). The revised bid locations the all-inventory exchange offer you at all around $ten a share, up marginally through the First bid.
But big shareholders which includes billionaire investor Carl Icahn coupled with hedge cash and portfolio administrators have deemed the First bid to generally be inappropriate. Elliott Associates believes the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is value involving $1.five billion and $two.four billion. The estimate is nicely previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way also very low and must be rejected by shareholders. Micron 소액결제정책 wishes to pay all over https://www.washingtonpost.com/newssearch/?query=소액결제 1.10x revenue for Lexar although the marketplace chief SanDisk (SNDK) is investing at 4.35x profits. Lexar also features a $400 million patent infringement lawsuit versus Toshiba that it experienced Formerly received but is now subject matter to an attraction by Toshiba.
Give it some thought in this manner, An effective $400 million settlement in favor of Lexar would equate to all around $4.eighty three for each share in additional dollars to incorporate to The present $0.54 in cost-free cash just after credit card debt that Lexar has. This implies Micron would shell out fewer than $five a share for Lexars property, and that is reduced.
There exists also speculation that SanDisk is critically thinking about having a run at acquiring Lexar. This may make sense since SanDisk would solidify its leadership posture.
Also, SanDisk has an in depth Doing work romance with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Remain tune. A special shareholder meeting to evaluation the takeover bid continues to be moved to June sixteen. In my watch, the $ten bid undervalues Lexar. Problem is will a white knight floor?