On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Engineering (MU). The revised bid areas the all-inventory Trade offer at about $ten a share, up marginally from the Preliminary bid.
But significant shareholders which include billionaire investor Carl Icahn in conjunction with hedge funds and portfolio managers have deemed the initial bid to be inappropriate. Elliott Associates thinks the First bid “drastically undervalues Lexar,” and feels Lexar is truly worth among $1.5 billion and $two.4 billion. The estimate is well above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too reduced and should be rejected by shareholders. Micron would like to fork out around one.10x gross sales for Lexar when the marketplace chief SanDisk (SNDK) is trading at 4.35x sales. Lexar also provides a $four hundred million patent infringement lawsuit from Toshiba that it had Earlier gained but is currently subject matter to an appeal by Toshiba.
Think about it using this method, a successful $four hundred million settlement in favor of Lexar would equate to all around $4.eighty three for each share in supplemental cash to add to The present $0.fifty four in free more info of charge income right after debt that Lexar has. This implies Micron would spend fewer than $5 a share for Lexars belongings, and that is low.
There is also speculation that SanDisk is significantly serious about getting a run at getting Lexar. This may seem sensible considering that SanDisk would solidify its Management place.
Furthermore, SanDisk has https://www.washingtonpost.com/newssearch/?query=소액결제 a detailed Functioning relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to obtain Lexar.
Continue to be tune. A Unique shareholder meeting to overview the takeover bid has been moved to June sixteen. In my see, the $ten bid undervalues Lexar. Issue is will a white knight surface?