On Friday, flash media maker Lexar Media (LEXR) acquired the next revised takeover bid from Micron Technological know-how (MU). The revised bid places the all-stock Trade present at close to $ten a share, up marginally from the Original bid.
But big shareholders together with billionaire investor Carl Icahn together with hedge funds and portfolio professionals have considered the Preliminary bid to be inappropriate. Elliott Associates thinks the initial bid “drastically undervalues Lexar,” and feels Lexar is really worth in between $one.five billion and $2.4 billion. The estimate is well 정보이용료 earlier mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way much too low and has to be turned down by shareholders. Micron desires to pay out close http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 to 1.10x revenue for Lexar though the marketplace leader SanDisk (SNDK) is buying and selling at four.35x sales. Lexar also features a $four hundred million patent infringement lawsuit towards Toshiba that it experienced Formerly received but is currently subject matter to an attraction by Toshiba.
Think about it using this method, A prosperous $400 million settlement in favor of Lexar would equate to around $four.83 for every share in further income so as to add to The existing $0.54 in cost-free hard cash after debt that Lexar has. This suggests Micron would pay back a lot less than $five a share for Lexars assets, and that is lower.
There may be also speculation that SanDisk is critically contemplating having a operate at obtaining Lexar. This might sound right given that SanDisk would solidify its leadership placement.
Additionally, SanDisk has an in depth Doing the job partnership with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.
Stay tune. A special shareholder Conference to assessment the takeover bid continues to be moved to June 16. In my see, the $10 bid undervalues Lexar. Query is will a white knight area?