On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Technology (MU). The revised bid spots the all-inventory Trade supply at all-around $ten a share, up marginally within the Original bid.
But main shareholders including billionaire Trader Carl Icahn as well as hedge funds and portfolio supervisors have considered the initial bid to get inappropriate. Elliott Associates believes the First bid “appreciably undervalues Lexar,” and feels Lexar is well worth concerning $one.5 billion and $2.4 billion. The estimate is perfectly above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too small and really should be turned down by shareholders. Micron really https://www.washingtonpost.com/newssearch/?query=소액결제 wants to pay about one.10x income for Lexar while the market leader SanDisk (SNDK) is trading at 4.35x revenue. Lexar also includes a $four hundred million patent infringement lawsuit from Toshiba that it had Earlier received but has become issue to an attractiveness by Toshiba.
Give it some thought using this method, An effective $four hundred million settlement in favor of Lexar would equate to about $4.83 for every share in more cash to include to the current $0.fifty four in cost-free funds right after financial debt that Lexar has. This means Micron would pay less than $five a share for Lexars property, that is very low.
There exists also speculation that SanDisk is very seriously considering having a operate at getting Lexar. This is able to seem sensible since SanDisk would solidify its leadership situation.
What's more, SanDisk has an in depth Functioning romance with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to Additional hints acquire Lexar.
Keep tune. A Distinctive shareholder Assembly to evaluate the takeover bid has become moved to June 16. In my view, the $ten bid undervalues Lexar. Question is will a white knight area?