On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Engineering (MU). The revised bid areas the all-stock exchange give at close to $10 a share, up marginally with the initial bid.
But significant shareholders like https://en.wikipedia.org/wiki/?search=소액결제 billionaire Trader Carl Icahn as well as hedge cash and portfolio professionals have considered the Original bid to become inappropriate. Elliott Associates thinks the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is value amongst $one.five billion and $2.4 billion. The estimate is nicely over the revised takeover 신용카드현금화 bid of about $827 million.
I have to concur and say the revised takeover bid is way too very low and should be turned down by shareholders. Micron wishes to spend around one.10x income for Lexar while the marketplace chief SanDisk (SNDK) is investing at four.35x gross sales. Lexar also provides a $400 million patent infringement lawsuit in opposition to Toshiba that it had Beforehand won but is currently topic to an appeal by Toshiba.
Consider it in this manner, A prosperous $400 million settlement in favor of Lexar would equate to around $four.83 per share in added funds to add to The existing $0.54 in free money following personal debt that Lexar has. This means Micron would fork out a lot less than $five a share for Lexars assets, which happens to be low.
There is also speculation that SanDisk is seriously thinking about having a run at getting Lexar. This would seem sensible given that SanDisk would solidify its leadership posture.
Additionally, SanDisk has an in depth Performing romantic relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to accumulate Lexar.
Remain tune. A special shareholder Assembly to review the takeover bid has become moved to June 16. In my check out, the $ten bid undervalues Lexar. Dilemma is will a white knight surface?