On Friday, flash media maker Lexar Media (LEXR) received a higher revised takeover bid from Micron Technological know-how (MU). The revised bid areas the all-inventory exchange provide at all over $ten a share, up marginally through the First bid.
But major shareholders like billionaire Trader Carl Icahn together with hedge funds and portfolio administrators have deemed the Preliminary bid for being inappropriate. Elliott Associates believes the First bid “noticeably undervalues Lexar,” and feels Lexar is well worth amongst $one.five billion and $2.4 billion. The estimate is nicely above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way too reduced and needs to be rejected by shareholders. Micron desires to pay all around 1.10x gross sales for Lexar whilst the marketplace leader SanDisk (SNDK) is trading at four.35x sales. Lexar also incorporates a $400 million patent infringement lawsuit versus Toshiba that it experienced previously received but is now subject to an charm by Toshiba.
Think about it in this way, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $four.83 for 소액결제현금화 every share in further hard cash so as to add to the current $0.fifty four in no cost dollars immediately after financial debt that Lexar has. This implies Micron would shell out fewer than $5 a share for Lexars belongings, which can be low.
There exists also speculation that SanDisk is critically thinking about using a run at attaining Lexar. This is able to make sense because SanDisk would solidify its Management position.
Also, SanDisk has a close Performing romantic relationship with Toshiba, which could see https://en.wikipedia.org/wiki/?search=소액결제 SanDisk drop or lessen the settlement if it managed to amass Lexar.
Keep tune. A special shareholder Assembly to evaluate the takeover bid has actually been moved to June 16. In my see, the $10 bid undervalues Lexar. Problem is will a white knight surface area?