On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technologies (MU). The revised bid areas the all-inventory exchange present at close to $ten a share, up marginally with the Original bid.
But major shareholders such as billionaire Trader Carl Icahn in addition to hedge money and portfolio professionals have deemed the First bid to generally be inappropriate. Elliott Associates believes the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is value involving $1.five billion and $two.4 billion. The estimate is properly higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also very low and has to be turned down by shareholders. Micron really wants to pay all-around one.10x revenue for Lexar while the marketplace leader SanDisk (SNDK) is investing at four.35x sales. Lexar also features a $four hundred million patent infringement lawsuit versus Toshiba that it experienced Beforehand won but is now subject to an appeal by Toshiba.
Consider it using this method, An effective $400 million settlement in favor of Lexar would equate to all over $four.eighty three per share in more dollars to include to The present $0.54 in free of charge dollars following financial debt that Lexar has. This suggests Micron would fork out less than $five https://en.wikipedia.org/wiki/?search=소액결제 a share for Lexars assets, and that is very low.
There's also speculation that SanDisk is significantly thinking about getting a run at acquiring Lexar. This is able to make sense due to the fact SanDisk would solidify its leadership place.
What's more, SanDisk has an in depth Doing work relationship with 소액결제현금화 Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Keep tune. A special shareholder meeting to overview the takeover bid continues to be moved to June 16. In my view, the $10 bid undervalues Lexar. Issue is will a white knight surface area?