소액결제현금화: It's Not as Difficult as You Think

On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Engineering (MU). The revised bid locations the all-stock exchange offer you at all around $ten a share, up marginally with the Preliminary bid.

But key shareholders including billionaire investor Carl Icahn together with hedge funds and portfolio administrators have considered the initial bid for being inappropriate. Elliott Associates thinks the Original bid “significantly undervalues Lexar,” and feels Lexar is well worth in between $1.five billion and $2.four billion. The estimate is properly over the revised takeover bid of about $827 million.

I must concur and say the revised takeover bid is way too low and has to be turned down by shareholders. Micron desires to pay all-around one.10x revenue for Lexar while the 소액결제현금화 industry chief SanDisk (SNDK) is buying and selling at four.35x gross sales. Lexar also contains a $400 million patent infringement lawsuit against Toshiba that it experienced Formerly gained but has become topic to an appeal by Toshiba.

Think it over this fashion, A prosperous $400 million settlement in favor of Lexar would equate to all around $4.eighty three per share in further money to include to The existing $0.fifty four in absolutely free cash immediately after credit card debt that Lexar has. This means Micron would spend a lot less than $five a share for Lexars assets, which is minimal.

There's also speculation that SanDisk is very seriously thinking about having a operate at attaining Lexar. This might make sense due to the fact SanDisk would solidify its leadership situation.

Furthermore, SanDisk has a close Doing the job connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.

Remain tune. A special shareholder meeting to review the takeover bid continues to be moved to June 16. In my view, the $10 bid undervalues Lexar. Problem is will a white knight floor?