On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Engineering (MU). The revised bid spots the all-stock exchange offer at about $10 a share, up marginally within the Original bid.
But big shareholders which include billionaire investor Carl Icahn along with hedge cash and portfolio managers have considered the initial bid to become inappropriate. Elliott Associates thinks the initial bid “appreciably undervalues Lexar,” and feels Lexar is well worth amongst $1.5 billion and $2.4 billion. The estimate is perfectly above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 also minimal and needs to be rejected by shareholders. Micron desires to pay all over 1.10x sales for Lexar though the market chief SanDisk (SNDK) is trading at 4.35x revenue. Lexar also contains a $400 million patent infringement lawsuit versus Toshiba that it experienced Beforehand gained but has become subject to an charm by Toshiba.
Think it over this fashion, a successful $400 million settlement in favor of Lexar would equate to about $four.83 per share in more cash to incorporate to The present $0.54 in free money following debt that Lexar has. This suggests Micron would spend fewer than $five a share for Lexars assets, that is 소액결제정책 low.
You can find also speculation that SanDisk is seriously considering using a operate at acquiring Lexar. This might seem sensible because SanDisk would solidify its leadership position.
In addition, SanDisk has a detailed Functioning marriage with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to acquire Lexar.
Continue to be tune. A Unique shareholder meeting to critique the takeover bid is moved to June 16. In my check out, the $ten bid undervalues Lexar. Problem is will a white knight floor?