On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Technology (MU). The revised bid destinations the all-stock Trade present at about $10 a share, up marginally from the Original bid.
But important shareholders including billionaire Trader Carl Icahn together with hedge funds and portfolio professionals have deemed the Original bid to be inappropriate. Elliott Associates http://www.bbc.co.uk/search?q=소액결제 thinks the Original bid “drastically undervalues Lexar,” and feels Lexar is worthy of involving $one.5 billion and $2.4 billion. The estimate is effectively earlier mentioned the 소액결제현금화 revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too minimal and needs to be rejected by shareholders. Micron hopes to pay back all around one.10x revenue for Lexar while the market leader SanDisk (SNDK) is investing at 4.35x profits. Lexar also features a $400 million patent infringement lawsuit versus Toshiba that it experienced previously gained but is now matter to an appeal by Toshiba.
Give it some thought by doing this, a successful $400 million settlement in favor of Lexar would equate to close to $4.eighty three for every share in further hard cash so as to add to The existing $0.fifty four in free money right after credit card debt that Lexar has. This suggests Micron would fork out below $five a share for Lexars assets, which is lower.
There's also speculation that SanDisk is seriously thinking about using a operate at getting Lexar. This may make sense considering the fact that SanDisk would solidify its Management posture.
Additionally, SanDisk has a detailed working romantic relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to amass Lexar.
Continue to be tune. A Distinctive shareholder meeting to review the takeover bid has become moved to June 16. In my look at, the $10 bid undervalues Lexar. Concern is will a white knight floor?