On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid destinations the all-stock exchange offer at all over $ten a share, up marginally through the initial bid.
But important shareholders like billionaire investor Carl Icahn coupled with hedge money and portfolio administrators have deemed the Original bid to get inappropriate. Elliott Associates thinks the initial bid “significantly undervalues Lexar,” and feels Lexar is worth involving $1.five billion and $two.four billion. The estimate is nicely earlier 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 needs to be turned down by shareholders. Micron desires to pay back all around one.10x profits for Lexar though the market chief SanDisk (SNDK) is buying and https://en.wikipedia.org/wiki/?search=소액결제 selling at 4.35x sales. Lexar also provides a $four hundred million patent infringement lawsuit in opposition to Toshiba that it experienced Formerly gained but is currently subject to an charm by Toshiba.
Think about it in this way, a successful $400 million settlement in favor of Lexar would equate to about $4.eighty three for every share in supplemental cash to incorporate to The existing $0.54 in totally free hard cash after personal debt that Lexar has. This suggests Micron would pay back fewer than $five a share for Lexars property, that's very low.
There is also speculation that SanDisk is seriously thinking about using a run at obtaining Lexar. This could seem sensible here considering that SanDisk would solidify its Management placement.
What's more, SanDisk has a detailed Operating romantic relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Keep tune. A Particular shareholder Assembly to assessment the takeover bid has become moved to June 16. In my look at, the $ten bid undervalues Lexar. Concern is will a white knight floor?