On Friday, flash media maker Lexar https://www.washingtonpost.com/newssearch/?query=소액결제 Media (LEXR) been given a higher revised takeover bid from Micron Know-how (MU). The revised bid areas the all-inventory Trade provide at close to $10 a share, up marginally through the initial bid.
But significant shareholders which includes billionaire investor Carl Icahn coupled with hedge cash and portfolio managers have 소액결제정책 deemed the initial bid to get inappropriate. Elliott Associates believes the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is worth among $one.five billion and $2.4 billion. The estimate is very well earlier mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well low and has to be rejected by shareholders. Micron really wants to pay about 1.10x income for Lexar although the marketplace chief SanDisk (SNDK) is buying and selling at 4.35x sales. Lexar also has a $four hundred million patent infringement lawsuit against Toshiba that it had Formerly won but has become topic to an charm by Toshiba.
Think about it using this method, A prosperous $400 million settlement in favor of Lexar would equate to about $4.83 per share in supplemental money so as to add to The present $0.54 in absolutely free cash just after credit card debt that Lexar has. This suggests Micron would pay back a lot less than $five a share for Lexars assets, and that is small.
There exists also speculation that SanDisk is significantly considering having a run at obtaining Lexar. This is able to sound right considering that SanDisk would solidify its Management posture.
Moreover, SanDisk has a close Operating marriage with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Stay tune. A Unique shareholder Assembly to overview the takeover bid has been moved to June 16. In my view, the $ten bid undervalues Lexar. Concern is will a white knight surface area?