On Friday, flash media maker Lexar Media (LEXR) acquired an http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 increased revised takeover bid from Micron Know-how (MU). The revised bid areas the all-inventory Trade provide at all-around $ten a share, up marginally from the Original bid.
But major shareholders such as billionaire Trader Carl Icahn together with hedge cash and portfolio professionals have deemed the initial bid to be inappropriate. Elliott Associates thinks the Preliminary bid “appreciably undervalues Lexar,” and feels Lexar is truly worth in between $one.5 billion and $2.four billion. The estimate is properly higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way much too low and needs to be turned down by shareholders. Micron wants to fork out around 1.10x income for Lexar whilst the industry chief SanDisk (SNDK) is investing at 4.35x sales. Lexar also features a $400 million patent infringement lawsuit versus Toshiba that it experienced Earlier gained but is currently matter to an appeal by Toshiba.
Think it over in this manner, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.83 per share in additional hard cash to add to the current $0.fifty four in totally free funds right after financial debt that Lexar has. This means Micron would pay out under $five a share for Lexars belongings, which is small.
There may be also speculation that SanDisk is severely pondering 소액결제정책 having a operate at getting Lexar. This might sound right considering that SanDisk would solidify its Management posture.
Furthermore, SanDisk has an in depth Functioning relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to amass Lexar.
Continue to be tune. A special shareholder meeting to review the takeover bid is moved to June 16. In my check out, the $10 bid undervalues Lexar. Question is will a white knight surface area?