On Friday, flash media maker Lexar Media (LEXR) acquired an increased revised takeover bid from Micron Technology (MU). The revised https://www.washingtonpost.com/newssearch/?query=소액결제 bid locations the all-inventory Trade provide at all-around $10 a share, up marginally from the First bid.
But main shareholders such as billionaire Trader Carl Icahn in addition to hedge resources and portfolio professionals have considered the Preliminary bid being inappropriate. Elliott Associates thinks the Original bid “considerably undervalues Lexar,” and feels Lexar is really worth between $one.5 billion and $2.4 billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way too minimal and ought to be rejected by shareholders. Micron wishes to pay back about 1.10x product sales for Lexar while the marketplace leader SanDisk (SNDK) is buying and selling at four.35x income. Lexar also provides a $400 million patent infringement lawsuit towards Toshiba that it experienced Formerly received but is now subject matter to an charm by Toshiba.
Consider it this fashion, a successful $400 million settlement in favor of Lexar would equate to all around $4.eighty three for each share in further hard cash to incorporate to The existing $0.54 in totally free income right after financial debt that Lexar has. This suggests Micron would spend fewer than $5 a share for Lexars belongings, and that is lower.
There's also speculation that SanDisk is severely pondering having a run at obtaining read more Lexar. This is able to seem sensible due to the fact SanDisk would solidify its leadership situation.
Additionally, SanDisk has a detailed Operating romance with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar.
Continue to be tune. A Specific shareholder meeting to critique the takeover bid has become moved to June 16. In my perspective, the $10 bid undervalues Lexar. Question is will a white knight area?