On Friday, flash media maker Lexar Media (LEXR) been given a better revised takeover bid from Micron Technological know-how (MU). The revised bid places the all-stock Trade supply at about $ten a share, up marginally from the initial bid.
But major shareholders including billionaire Trader Carl Icahn as well as hedge funds and portfolio professionals have deemed the initial bid to become inappropriate. Elliott Associates thinks the First bid “appreciably undervalues Lexar,” and feels Lexar is well worth amongst $one.5 billion and $2.four billion. The estimate is perfectly previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too very low and really should be turned down by shareholders. Micron really wants to spend around 1.10x profits for Lexar while the industry chief http://www.thefreedictionary.com/소액결제 SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also includes a $four hundred million patent infringement lawsuit towards Toshiba that it experienced previously gained but is now topic to an appeal by Toshiba.
Consider it in this way, An effective $400 million settlement in favor of Lexar would equate to about $4.eighty three for every share in added dollars to add to the current $0.fifty four in absolutely free funds after personal debt that Lexar has. This suggests Micron would shell out fewer than $five a share for Lexars belongings, which happens to be small.
There may be also speculation that SanDisk is very seriously considering using a run at obtaining Lexar. This may seem sensible given that SanDisk would solidify its Management place.
Moreover, SanDisk has a detailed Performing relationship 신용카드현금화 with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to acquire Lexar.
Stay tune. A Exclusive shareholder Assembly to evaluate the takeover bid is moved to June 16. In my perspective, the $ten bid undervalues Lexar. Query is will a white knight floor?