On Friday, flash media maker Lexar Media (LEXR) acquired the next revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock Trade offer you at about $10 a share, up marginally through the initial bid.
But major shareholders including billionaire Trader Carl Icahn coupled with hedge funds and portfolio administrators have deemed the initial bid for being inappropriate. Elliott Associates believes the initial bid “significantly undervalues Lexar,” and feels Lexar is really worth concerning $one.five billion and $two.4 billion. The estimate is very well over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also very low and ought to be rejected by shareholders. Micron wants to shell out all-around 1.10x profits for Lexar whilst the industry leader SanDisk (SNDK) is investing at 4.35x profits. Lexar also has a $four hundred million patent infringement lawsuit towards Toshiba that it had Beforehand received but is now matter to an attraction by Toshiba.
Think it over in this manner, 정보이용료 An effective $four hundred https://www.washingtonpost.com/newssearch/?query=소액결제 million settlement in favor of Lexar would equate to around $4.eighty three for every share in extra hard cash so as to add to the current $0.fifty four in cost-free hard cash following financial debt that Lexar has. This suggests Micron would fork out a lot less than $5 a share for Lexars belongings, that's lower.
There is also speculation that SanDisk is significantly pondering taking a operate at getting Lexar. This could make sense given that SanDisk would solidify its leadership placement.
Furthermore, SanDisk has a close Operating relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to acquire Lexar.
Continue to be tune. A Exclusive shareholder Assembly to assessment the takeover bid continues to be moved to June 16. In my check out, the $ten bid undervalues Lexar. Issue is will a white knight surface?