On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Technology (MU). The revised bid places the all-stock exchange give at all around $10 a share, up marginally within the Preliminary bid.
But major shareholders which includes billionaire investor Carl Icahn coupled with hedge cash and portfolio professionals have deemed the initial bid to generally be inappropriate. Elliott Associates thinks the initial bid “substantially undervalues Lexar,” and feels Lexar is well worth amongst $1.5 billion and $two.four billion. The estimate is very well over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also small and ought to be turned down by shareholders. Micron hopes to shell out all around 1.10x product sales for Lexar although the industry leader SanDisk (SNDK) is trading at four.35x revenue. Lexar also contains a $400 million patent infringement lawsuit from Toshiba that it experienced previously won but is currently subject to an attractiveness by Toshiba.
Think about it https://www.washingtonpost.com/newssearch/?query=소액결제 in this manner, An effective $four hundred million settlement in favor of Lexar would equate to around $4.eighty three for each share in added cash to include to The present $0.54 in totally free funds immediately after credit card debt that Lexar has. This suggests Micron would pay out lower than $5 a share for Lexars assets, that is small.
There's also speculation that SanDisk is critically pondering having a run at acquiring Lexar. This would make sense due to the fact SanDisk would solidify its Management place.
Furthermore, SanDisk has a close Doing the job partnership with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Keep tune. A special shareholder meeting to critique the takeover bid has become moved to June sixteen. In my view, the 소액결제정책 $ten bid undervalues Lexar. Issue is will a white knight surface area?