On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock exchange offer at all-around $ten a share, up marginally in the Preliminary bid.
But big http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 shareholders together with billionaire Trader Carl Icahn together with hedge resources and portfolio supervisors have deemed the Preliminary bid to get inappropriate. Elliott Associates believes the initial bid “considerably undervalues Lexar,” and 소액결제 feels Lexar is really worth involving $1.five billion and $2.four billion. The estimate is very well previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also reduced and ought to be rejected by shareholders. Micron wishes to pay back all over 1.10x income for Lexar though the market leader SanDisk (SNDK) is investing at four.35x revenue. Lexar also provides a $four hundred million patent infringement lawsuit from Toshiba that it experienced previously received but is now matter to an attraction by Toshiba.
Think about it in this manner, An effective $400 million settlement in favor of Lexar would equate to all over $four.83 for every share in supplemental dollars to add to The existing $0.fifty four in no cost income immediately after financial debt that Lexar has. This means Micron would pay back under $5 a share for Lexars assets, which can be reduced.
There's also speculation that SanDisk is very seriously contemplating having a operate at obtaining Lexar. This is able to make sense due to the fact SanDisk would solidify its leadership place.
Additionally, SanDisk has an in depth Performing romantic relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Remain tune. A special shareholder meeting to assessment the takeover bid has long been moved to June sixteen. In my see, the $10 bid undervalues Lexar. Problem is will a white knight floor?