On Friday, flash media maker Lexar Media (LEXR) obtained a better revised takeover bid from Micron Technological know-how (MU). The revised bid locations the all-inventory Trade offer at all over $ten a share, up marginally within the initial bid.
But key shareholders together with billionaire Trader Carl Icahn in conjunction with hedge money and portfolio managers have deemed the Preliminary bid to get inappropriate. Elliott Associates believes the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is worthy of among $one.5 billion and $two.4 billion. The estimate is well over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too small and has to be rejected by shareholders. Micron desires to shell out about one.10x revenue for Lexar whilst the market chief SanDisk (SNDK) is investing at 4.35x revenue. Lexar also has a $400 million patent infringement lawsuit in opposition to Toshiba that it had previously received but has become subject to an appeal by Toshiba.
Think it over by doing this, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $4.eighty three for each share in added income so as to add to The existing $0.54 in cost-free http://www.bbc.co.uk/search?q=소액결제 cash right after personal debt 소액결제정책 that Lexar has. What this means is Micron would pay out lower than $5 a share for Lexars belongings, which happens to be small.
There exists also speculation that SanDisk is critically thinking of using a operate at obtaining Lexar. This is able to seem sensible due to the fact SanDisk would solidify its leadership place.
What's more, SanDisk has an in depth Doing work partnership with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.
Stay tune. A Particular shareholder Assembly to assessment the takeover bid has actually been moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Query is will a white knight surface?