On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technological innovation (MU). The revised bid destinations the all-stock exchange present at all over $ten a share, up marginally from the First bid.
But major shareholders including billionaire Trader Carl Icahn in addition to hedge cash and portfolio supervisors have deemed the Original bid to get inappropriate. Elliott Associates believes the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is well worth involving $1.5 billion and $two.four billion. The estimate is well above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 way also http://xn--7y2br0oc8jnkbb1f.kr/ lower and must be turned down by shareholders. Micron desires to spend around 1.10x sales for Lexar even though the market leader SanDisk (SNDK) is buying and selling at four.35x profits. Lexar also contains a $four hundred million patent infringement lawsuit from Toshiba that it had previously received but is currently matter to an attraction by Toshiba.
Consider it by doing this, a successful $400 million settlement in favor of Lexar would equate to about $4.eighty three for every share in supplemental hard cash to include to The present $0.54 in absolutely free income following debt that Lexar has. What this means is Micron would pay out under $5 a share for Lexars property, and that is small.
There's also speculation that SanDisk is seriously thinking about taking a operate at acquiring Lexar. This is able to seem sensible because SanDisk would solidify its leadership posture.
What's more, SanDisk has a close Doing the job relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Remain tune. A Exclusive shareholder meeting to assessment the takeover bid has become moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Dilemma is will a white knight surface?