On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technological innovation (MU). The revised bid sites the all-stock exchange offer you at close to $10 a share, up marginally from your Preliminary bid.
But big shareholders such as billionaire Trader Carl Icahn in conjunction with hedge cash and portfolio managers have deemed the initial bid to get inappropriate. Elliott Associates thinks the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is well worth among $1.five billion and $2.4 billion. The estimate is well over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too low and ought to be rejected by shareholders. Micron really wants to fork out all around one.10x profits for Lexar although the industry chief SanDisk (SNDK) is investing at 4.35x income. Lexar website also includes a $400 million patent infringement lawsuit towards Toshiba that it had Formerly won but is now subject matter to an appeal by Toshiba.
Give it some thought by doing this, An effective $four hundred million settlement in favor of Lexar would equate to about $4.83 per share in extra cash to include to the current $0.fifty four in cost-free hard cash following personal debt that Lexar has. This implies Micron would pay back under $five a share for Lexars assets, which can be small.
You can find also speculation that SanDisk is critically considering having a operate at attaining Lexar. This would seem sensible given that SanDisk would solidify http://www.bbc.co.uk/search?q=소액결제 its Management placement.
In addition, SanDisk has a close Doing the job connection with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to amass Lexar.
Continue to be tune. A Distinctive shareholder Conference to assessment the takeover bid has become moved to June sixteen. In my see, the $ten bid undervalues Lexar. Concern is will a white knight area?