On Friday, flash media maker Lexar Media (LEXR) been given a greater revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-inventory Trade provide at about $ten a share, up marginally with the First bid.
But main shareholders which includes billionaire Trader Carl Icahn along with hedge resources and portfolio managers have deemed the initial bid to generally be inappropriate. Elliott Associates believes the initial bid “drastically undervalues Lexar,” and feels Lexar is well worth between $1.5 billion and $2.4 billion. The estimate is very well above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well low and ought to be turned down by shareholders. Micron would like to spend all-around one.10x gross sales for Lexar whilst the market leader SanDisk (SNDK) is buying and selling at four.35x income. Lexar also has a $four hundred million patent infringement lawsuit versus Toshiba that it experienced Formerly gained but is currently issue to an attractiveness by Toshiba.
Think it over this way, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $four.83 for every share in more cash to add to The present $0.54 in free of charge cash just after debt that Lexar has. This implies Micron would pay back fewer than $5 a share for Lexars assets, which happens to be reduced.
There is certainly also https://en.search.wordpress.com/?src=organic&q=소액결제 speculation that SanDisk is critically pondering taking a operate at getting Lexar. This would seem sensible because SanDisk would solidify its leadership situation.
Additionally, SanDisk has a close working partnership with 정보이용료 Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Keep tune. A Particular shareholder Assembly to evaluation the takeover bid has been moved to June 16. In my perspective, the $10 bid undervalues Lexar. Query is will a white knight surface?