On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Technology (MU). The revised bid areas the all-stock exchange offer at all around $10 a share, up marginally within the Original bid.
But significant shareholders which include billionaire Trader Carl Icahn together with hedge money and portfolio professionals have deemed the Original bid to generally be inappropriate. Elliott Associates believes the Preliminary bid “appreciably undervalues Lexar,” and feels Lexar is value between $1.five billion and $2.4 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 too small and ought to be turned down by shareholders. Micron really wants to pay back close to one.10x sales for Lexar though the market chief SanDisk (SNDK) is trading at 4.35x gross sales. Lexar also contains a $400 million patent infringement lawsuit towards Toshiba that it had previously gained but is currently topic to an appeal by Toshiba.
Give it some thought in this way, a successful $four hundred million settlement in favor of Lexar would equate to about $4.83 for every share in additional money to add to The existing $0.fifty four in absolutely free dollars soon after credit card debt that Lexar has. This implies Micron would pay back under $5 a share for Lexars belongings, that is small.
There exists also speculation that SanDisk is seriously pondering having a run at getting Lexar. This could sound right considering that SanDisk would solidify its Management position.
Moreover, SanDisk has an in depth Doing work connection with Toshiba, which 신용카드현금화 could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Continue to be tune. A special shareholder Conference to review the takeover https://www.washingtonpost.com/newssearch/?query=소액결제 bid has long been moved to June 16. In my look at, the $ten bid undervalues Lexar. Concern is will a white knight surface?