On Friday, 소액결제현금화 flash media maker Lexar Media (LEXR) received an increased revised takeover bid from Micron Technological innovation (MU). The revised bid spots the all-inventory exchange supply at close to $ten a share, up marginally with the First bid.
But key shareholders which include billionaire Trader Carl Icahn coupled with hedge funds and portfolio managers have considered the Preliminary bid to get inappropriate. Elliott Associates believes the Original bid “appreciably undervalues Lexar,” and feels Lexar is value amongst $1.5 billion and $2.4 billion. The estimate is perfectly higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too low and really should be rejected by shareholders. Micron desires to pay out about 1.10x sales for Lexar when the market leader SanDisk (SNDK) is investing at four.35x revenue. Lexar also includes a $400 million patent infringement lawsuit towards Toshiba that it had previously won but is now matter to an attraction by Toshiba.
Think it over this way, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.83 per share in supplemental cash to include to http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 The present $0.fifty four in absolutely free hard cash immediately after credit card debt that Lexar has. This implies Micron would shell out under $five a share for Lexars assets, that's low.
You can find also speculation that SanDisk is severely serious about having a operate at buying Lexar. This might seem sensible considering that SanDisk would solidify its Management place.
Moreover, SanDisk has a close Doing work relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Keep tune. A Distinctive shareholder Conference to overview the takeover bid has actually been moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Concern is will a white knight floor?