On Friday, flash media maker 소액결제현금화 Lexar Media (LEXR) been given an increased revised takeover bid from Micron Technological innovation (MU). The revised bid areas the all-inventory exchange provide at around $10 a share, up marginally from your initial bid.
But big shareholders which includes billionaire Trader Carl Icahn coupled with hedge resources and portfolio professionals have considered the initial bid for being inappropriate. Elliott Associates believes the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is worthy of in between $one.five billion and $two.4 billion. The estimate is very well earlier mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too low and needs to be turned down by shareholders. Micron would like to pay out all around 1.10x product sales for Lexar while the industry leader SanDisk (SNDK) is investing at 4.35x product sales. Lexar also has a $400 million patent infringement lawsuit versus Toshiba https://www.washingtonpost.com/newssearch/?query=소액결제 that it had Formerly received but is now subject matter to an attractiveness by Toshiba.
Give it some thought this fashion, a successful $four hundred million settlement in favor of Lexar would equate to about $4.eighty three for each share in more money to add to The present $0.fifty four in free of charge cash immediately after financial debt that Lexar has. What this means is Micron would pay lower than $5 a share for Lexars assets, which happens to be very low.
There's also speculation that SanDisk is very seriously serious about using a operate at obtaining Lexar. This is able to sound right because SanDisk would solidify its leadership place.
What's more, SanDisk has a close Doing work partnership with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Keep tune. A Specific shareholder meeting to evaluate the takeover bid continues to be moved to June sixteen. In my perspective, the $10 bid undervalues Lexar. Dilemma is will a white knight surface?