On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-inventory Trade give at around $ten a share, up marginally through the Preliminary bid.
But major shareholders which includes billionaire investor Carl Icahn in conjunction with hedge funds and portfolio supervisors have considered the First bid to become inappropriate. Elliott Associates thinks the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is worthy of concerning $1.five billion and $2.4 billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too reduced and should be turned down by shareholders. Micron wishes to pay out close to 1.10x gross sales for Lexar when the marketplace chief SanDisk (SNDK) is buying and selling at 4.35x product sales. Lexar also features a $400 million patent infringement lawsuit in opposition to Toshiba that it experienced Beforehand won but has become issue to an charm by Toshiba.
Think it over in this manner, a successful $four hundred million settlement in favor of Lexar would equate to close to $four.eighty three per share in extra income to incorporate to the current $0.fifty four in totally free dollars following credit card debt that Lexar has. What this means is Micron would spend fewer than $five a share for Lexars assets, that is small.
There may be also speculation that SanDisk is critically thinking about having a run at buying Lexar. This is able to seem sensible given that SanDisk would solidify its leadership situation.
Additionally, SanDisk has a close Performing romance with Toshiba, which 소액결제현금화 could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.
Continue https://www.washingtonpost.com/newssearch/?query=소액결제 to be tune. A special shareholder Assembly to evaluation the takeover bid is moved to June 16. In my watch, the $10 bid undervalues Lexar. Question is will a white knight floor?