On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Engineering (MU). The revised bid spots the all-stock exchange offer at close to $ten a share, up marginally with the Original bid.
But key shareholders such as billionaire investor Carl Icahn in conjunction with hedge cash and portfolio professionals have deemed the initial bid to become inappropriate. Elliott Associates believes the Original bid “considerably undervalues Lexar,” and feels Lexar is worth involving $1.five billion and $two.four billion. The estimate is effectively over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too minimal and has to be turned down by shareholders. Micron desires to spend close to one.10x income for Lexar though the marketplace leader SanDisk (SNDK) is investing at 4.35x profits. Lexar also provides a $400 million patent infringement lawsuit from Toshiba that it experienced Beforehand received but is currently topic to an attraction by Toshiba.
Think it over by doing this, A prosperous $400 million settlement in favor of Lexar would equate to close to $4.eighty three per share in further hard cash so as to add to The existing $0.54 in free money after credit card debt that Lexar has. What this means is Micron would fork out below $5 a share for Lexars belongings, that is very low.
There is certainly also speculation that SanDisk is seriously pondering having a run at getting Lexar. This would make sense https://www.washingtonpost.com/newssearch/?query=소액결제 since SanDisk would solidify its leadership situation.
What's more, SanDisk has an in depth Operating partnership with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to accumulate 소액결제 Lexar.
Continue to be tune. A Distinctive shareholder meeting to evaluate the takeover bid has become moved to June 16. In my check out, the $ten bid undervalues Lexar. Question is will a white knight surface?