On Friday, flash media maker Lexar Media (LEXR) obtained a greater revised takeover bid from Micron Know-how (MU). The revised bid areas the all-inventory Trade 소액결제현금화 offer at close to $10 a share, up marginally from the Preliminary bid.
But big shareholders which include billionaire investor Carl Icahn as well as hedge cash and portfolio supervisors have considered the Preliminary bid being inappropriate. Elliott Associates thinks the initial bid “considerably undervalues Lexar,” and feels Lexar is truly worth among $1.5 billion and $2.four billion. The estimate is very well over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way too very low and needs to be rejected by shareholders. Micron would like to fork out all-around one.10x profits for Lexar even though the industry chief SanDisk (SNDK) is buying and selling at 4.35x profits. Lexar also incorporates a $400 million patent infringement lawsuit against Toshiba that it experienced Formerly gained but is now subject matter to an appeal by Toshiba.
Think about it in this manner, A prosperous $400 million settlement in favor of Lexar would equate to close to $four.eighty three for each share in supplemental dollars to include to the current $0.54 in totally free hard cash just after credit card debt http://www.thefreedictionary.com/소액결제 that Lexar has. What this means is Micron would pay less than $5 a share for Lexars property, that is low.
There is certainly also speculation that SanDisk is significantly serious about having a operate at buying Lexar. This is able to seem sensible considering the fact that SanDisk would solidify its Management place.
What's more, SanDisk has a detailed Functioning connection with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Keep tune. A Distinctive shareholder Conference to critique the takeover bid is moved to June sixteen. In my view, the $ten bid undervalues Lexar. Problem is will a white knight surface?