On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock exchange present at around $10 a share, up marginally within the Preliminary bid.
But big shareholders including billionaire investor Carl Icahn as well as hedge funds and portfolio administrators have deemed the initial bid to be inappropriate. Elliott Associates thinks the initial bid “noticeably undervalues Lexar,” and feels Lexar is well worth between $one.5 billion and $two.four billion. The estimate is nicely higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way too minimal and needs to be rejected by shareholders. Micron wishes to spend all over 1.10x http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 gross sales for Lexar while the market leader SanDisk (SNDK) is investing at 4.35x product sales. Lexar also includes a $400 million patent infringement lawsuit towards Toshiba that it experienced previously received but is currently topic to an appeal by Toshiba.
Think it over using this method, a successful $four hundred million settlement in favor of Lexar would equate to all-around $four.eighty three per share in supplemental hard cash to include to The existing $0.54 in totally free dollars immediately after credit card debt that Lexar has. This means Micron would spend below $five a share for Lexars property, which can be very low.
There is certainly 소액결제현금화 also speculation that SanDisk is very seriously pondering taking a operate at attaining Lexar. This might sound right since SanDisk would solidify its Management place.
Also, SanDisk has a close Operating relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to acquire Lexar.
Remain tune. A Distinctive shareholder Conference to critique the takeover bid is moved to June sixteen. In my watch, the $10 bid undervalues Lexar. Issue is will a white knight area?