On Friday, flash media maker Lexar Media (LEXR) obtained a higher revised takeover bid from Micron Technological know-how (MU). The revised bid areas the all-inventory Trade offer at all around $ten a share, up marginally from your Preliminary bid.
But major shareholders such as billionaire Trader Carl Icahn in conjunction with hedge cash and portfolio managers have considered the First bid to generally be inappropriate. Elliott Associates thinks the initial bid “significantly undervalues Lexar,” and https://en.search.wordpress.com/?src=organic&q=소액결제 feels Lexar is truly worth amongst $1.five billion and $2.four billion. The estimate is very well above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too low and needs to be rejected by shareholders. Micron desires to fork out all-around 1.10x product sales for Lexar while the market chief SanDisk (SNDK) is trading at 4.35x product sales. Lexar also features a $400 million patent infringement lawsuit towards Toshiba that it had previously received but is currently issue get more info to an attraction by Toshiba.
Think about it this way, A prosperous $four hundred million settlement in favor of Lexar would equate to all-around $four.eighty three for every share in further income to incorporate to the current $0.fifty four in totally free money following credit card debt that Lexar has. This implies Micron would shell out below $five a share for Lexars property, and that is reduced.
There exists also speculation that SanDisk is critically considering getting a operate at attaining Lexar. This is able to make sense because SanDisk would solidify its Management place.
Furthermore, SanDisk has a detailed Operating connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Remain tune. A Exclusive shareholder Conference to evaluation the takeover bid has actually been moved to June sixteen. In my view, the $ten bid undervalues Lexar. Concern is will a white knight floor?