On Friday, flash media maker Lexar Media (LEXR) obtained a better revised takeover bid from Micron Technological know-how (MU). The revised bid locations the all-inventory Trade offer you at all-around $10 a share, up marginally with the First bid.
But key shareholders together with billionaire investor Carl Icahn along with hedge cash and portfolio supervisors have considered the Preliminary bid to become inappropriate. Elliott Associates believes the First bid “considerably undervalues Lexar,” and feels Lexar is worthy of involving $one.5 billion and $2.4 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 low and really should be turned down by shareholders. 신용카드현금화 Micron would like to pay out all-around one.10x profits for Lexar although the industry leader SanDisk (SNDK) is investing at four.35x revenue. Lexar also contains a $four hundred million patent infringement lawsuit against Toshiba that it had previously received but is currently subject matter to an attractiveness by Toshiba.
Think about it by doing this, An effective $four hundred million settlement in favor of Lexar would equate to about $4.eighty three per share in more money to include to The existing $0.54 in cost-free hard cash right after credit card debt that Lexar has. What this means is Micron would shell out a lot less than $five a share for Lexars assets, which happens to be low.
There may be also speculation that SanDisk is significantly thinking of using a run at attaining Lexar. This could sound right given that SanDisk would solidify its leadership place.
In addition, SanDisk https://www.washingtonpost.com/newssearch/?query=소액결제 has a detailed Operating partnership with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to amass Lexar.
Keep tune. A Specific shareholder meeting to assessment the takeover bid is moved to June 16. In my view, the $ten bid undervalues Lexar. Concern is will a white knight surface?