On Friday, flash media maker Lexar Media (LEXR) gained the next revised takeover bid from Micron Engineering (MU). The revised bid destinations the all-inventory exchange offer you at all-around $10 a share, up marginally from your initial bid.
But key shareholders which includes billionaire Trader Carl Icahn along with hedge money and portfolio managers have considered the Original bid to generally be inappropriate. Elliott Associates thinks the Original bid “significantly undervalues Lexar,” and feels Lexar is well worth among $one.5 billion and $2.4 billion. The estimate is well over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way way too minimal and should be rejected by shareholders. Micron desires to pay out all-around 1.10x revenue for Lexar while the http://edition.cnn.com/search/?text=소액결제 industry leader SanDisk (SNDK) is trading at four.35x income. Lexar also features a $four hundred million patent infringement lawsuit against Toshiba that it experienced Earlier won but is currently subject matter to an 정보이용료 enchantment by Toshiba.
Think it over this way, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.eighty three for each share in additional cash so as to add to The existing $0.fifty four in absolutely free cash soon after credit card debt that Lexar has. This implies Micron would shell out below $five a share for Lexars belongings, that is lower.
There's also speculation that SanDisk is very seriously serious about using a run at buying Lexar. This may make sense due to the fact SanDisk would solidify its Management situation.
Furthermore, SanDisk has a close Doing the job romantic relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Continue to be tune. A special shareholder Conference to overview the takeover bid is moved to June sixteen. In my perspective, the $10 bid undervalues Lexar. Question is will a white knight area?