On Friday, flash media maker Lexar Media (LEXR) obtained a higher revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock Trade present at about $ten a share, up marginally through the Original bid.
But significant shareholders which include billionaire Trader Carl Icahn in conjunction with hedge money and portfolio supervisors have deemed the Original bid to generally be inappropriate. Elliott Associates believes the First bid “considerably undervalues Lexar,” and feels Lexar is worth among $one.5 billion and $2.4 billion. The estimate is perfectly above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too very low and ought to be turned down by shareholders. Micron hopes to pay back all over one.10x product sales for Lexar while the market chief SanDisk (SNDK) is trading at four.35x gross sales. Lexar also provides a $400 million patent infringement lawsuit versus Toshiba that it had Formerly gained but is now issue to an charm by Toshiba.
Think it over this way, A prosperous $400 million 소액결제정책 settlement in favor of Lexar would equate to all around $4.eighty three for every share in further money to include to The existing $0.54 in totally free income immediately after financial debt that Lexar has. This suggests Micron would shell out fewer than https://www.washingtonpost.com/newssearch/?query=소액결제 $5 a share for Lexars property, which happens to be lower.
You can find also speculation that SanDisk is significantly considering using a operate at attaining Lexar. This is able to sound right considering the fact that SanDisk would solidify its leadership situation.
Also, SanDisk has a close Doing work partnership with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to accumulate Lexar.
Remain tune. A Exclusive shareholder meeting to review the takeover bid is moved to June sixteen. In my look at, the $10 bid undervalues Lexar. Dilemma is will a white knight floor?