On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Technological innovation (MU). The revised bid spots the 소액결제정책 all-inventory exchange present at about $10 a share, up marginally in the Original bid.
But significant shareholders like billionaire investor Carl Icahn as well as hedge funds and portfolio administrators have deemed the http://edition.cnn.com/search/?text=소액결제 Original bid to become inappropriate. Elliott Associates believes the First bid “noticeably undervalues Lexar,” and feels Lexar is worthy of between $one.five billion and $two.4 billion. The estimate is very well higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too reduced and has to be turned down by shareholders. Micron really wants to pay out around one.10x product sales for Lexar although the market chief SanDisk (SNDK) is buying and selling at 4.35x income. Lexar also includes a $400 million patent infringement lawsuit from Toshiba that it experienced Formerly gained but has become matter to an attraction by Toshiba.
Consider it this fashion, An effective $400 million settlement in favor of Lexar would equate to around $four.83 for each share in further cash to incorporate to The present $0.54 in free funds right after debt that Lexar has. This means Micron would fork out a lot less than $5 a share for Lexars assets, that is very low.
There is also speculation that SanDisk is significantly serious about using a operate at getting Lexar. This could make sense due to the fact SanDisk would solidify its leadership situation.
Also, SanDisk has a detailed Doing the job romance with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to amass Lexar.
Stay tune. A Particular shareholder meeting to evaluation the takeover bid continues to be moved to June 16. In my view, the $10 bid undervalues Lexar. Query is will a white knight surface area?