On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Technological know-how (MU). The revised bid spots the all-inventory exchange supply at close to $ten a share, up marginally from your Original bid.
But big shareholders which includes billionaire investor Carl Icahn along with hedge cash and portfolio administrators have considered the First bid to be inappropriate. Elliott Associates believes the First bid “appreciably undervalues Lexar,” and feels Lexar is worthy of involving $1.5 billion and $2.four billion. The estimate is nicely higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well minimal and must be turned down by shareholders. Micron wants to spend close to 1.10x income for Lexar though the market leader SanDisk (SNDK) is buying and selling at http://edition.cnn.com/search/?text=소액결제 4.35x sales. Lexar also has a $400 million patent infringement lawsuit against Toshiba that it had Formerly won but is now issue to an attractiveness by Toshiba.
Think about it this way, A prosperous $400 million settlement in favor of Lexar would equate to website all-around $4.eighty three for each share in added hard cash to incorporate to The existing $0.fifty four in totally free funds soon after financial debt that Lexar has. This implies Micron would pay out lower than $five a share for Lexars assets, which is minimal.
There is certainly also speculation that SanDisk is seriously thinking about getting a operate at getting Lexar. This is able to make sense given that SanDisk would solidify its Management situation.
What's more, SanDisk has an in depth Operating partnership with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to amass Lexar.
Continue to be tune. A Exclusive shareholder Conference to review the takeover bid has been moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Question is will a white knight floor?