On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Know-how (MU). The revised bid destinations the all-stock exchange offer you at all around $ten a share, up marginally through the Original bid.
But key shareholders which include billionaire Trader Carl Icahn as well as hedge resources and portfolio managers have deemed the First bid to get inappropriate. Elliott Associates thinks the Original bid “considerably undervalues Lexar,” and feels Lexar is worthy of in between $1.five billion and $2.four billion. The estimate is effectively over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also small and ought to be turned down by shareholders. Micron wants to pay all over one.10x revenue for Lexar when the industry chief SanDisk (SNDK) is investing at 4.35x sales. Lexar also incorporates a $four hundred million patent http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 infringement lawsuit from Toshiba that it had previously won but has become matter to an enchantment by Toshiba.
Think about it this fashion, An effective $400 million settlement in favor of Lexar would equate to all around $4.eighty three per share 정보이용료 in additional funds to add to The existing $0.fifty four in no cost dollars just after personal debt that Lexar has. This suggests Micron would pay out lower than $5 a share for Lexars property, which happens to be low.
You can find also speculation that SanDisk is very seriously considering having a run at acquiring Lexar. This could seem sensible because SanDisk would solidify its Management situation.
Furthermore, SanDisk has an in depth Functioning relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to amass Lexar.
Continue to be tune. A Unique shareholder meeting to evaluation the takeover bid has actually been moved to June 16. In my perspective, the $10 bid undervalues Lexar. Issue is will a white knight surface?