On Friday, flash media maker Lexar Media (LEXR) been given the next revised takeover bid from Micron Engineering (MU). The revised bid areas the all-stock Trade offer at close to $10 a share, up marginally from the First bid.
But big shareholders such as billionaire Trader Carl Icahn in conjunction with hedge money and portfolio supervisors have deemed the http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 Preliminary bid to be inappropriate. Elliott Associates believes the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is value involving $one.five billion and $2.4 billion. The estimate is well previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well minimal and should be rejected by shareholders. Micron really wants to pay out around 1.10x gross sales for Lexar even though the industry leader SanDisk (SNDK) is buying and selling at 4.35x income. Lexar also has a $400 million patent infringement lawsuit versus Toshiba that it experienced previously won but has become subject matter to an charm by Toshiba.
Give it some thought this fashion, A prosperous $four hundred million settlement in favor of Lexar would equate to about $four.83 per share in added cash to incorporate to The existing $0.54 in cost-free dollars after personal debt that Lexar has. This suggests Micron would spend under $5 a share for Lexars assets, which is very low.
There is also speculation that SanDisk 소액결제정책 is severely considering using a run at obtaining Lexar. This could sound right due to the fact SanDisk would solidify its leadership situation.
Also, SanDisk has a detailed Functioning relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Continue to be tune. A Particular shareholder Assembly to critique the takeover bid has long been moved to June sixteen. In my view, the $ten bid undervalues Lexar. Query is will a white knight surface area?