On Friday, flash media maker Lexar Media (LEXR) acquired an increased revised takeover bid from Micron Engineering (MU). The revised bid destinations the all-stock Trade offer you at all over $ten a share, up marginally from your Original bid.
But major shareholders such as billionaire Trader Carl Icahn along with hedge resources and http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 portfolio professionals have considered the Original bid to be inappropriate. Elliott Associates thinks the Original bid “drastically undervalues Lexar,” and feels Lexar is really worth involving $1.five billion and $2.4 billion. The estimate is perfectly earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too low and really should be turned down by shareholders. Micron wants to fork out around one.10x product sales 소액결제현금화 for Lexar although the industry leader SanDisk (SNDK) is trading at four.35x sales. Lexar also contains a $400 million patent infringement lawsuit in opposition to Toshiba that it experienced Beforehand won but has become topic to an attractiveness by Toshiba.
Think about it this way, a successful $400 million settlement in favor of Lexar would equate to all around $4.eighty three for every share in more money to incorporate to the current $0.fifty four in totally free funds soon after personal debt that Lexar has. This means Micron would shell out less than $5 a share for Lexars assets, that is low.
There is also speculation that SanDisk is seriously thinking of getting a run at attaining Lexar. This might make sense due to the fact SanDisk would solidify its leadership posture.
Moreover, SanDisk has a detailed Performing relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Keep tune. A Exclusive shareholder Assembly to evaluate the takeover bid has been moved to June 16. In my watch, the $10 bid undervalues Lexar. Dilemma is will a white knight surface?