On Friday, flash media maker Lexar Media (LEXR) been given a greater revised takeover bid from Micron Engineering (MU). The revised bid places the all-inventory exchange provide at around $ten a share, up marginally from your First bid.
But important shareholders including billionaire Trader Carl Icahn along with hedge resources and portfolio managers have deemed the First bid to get inappropriate. Elliott Associates thinks the initial bid “considerably undervalues Lexar,” and feels Lexar is worthy of among $one.5 billion and $two.4 billion. The estimate is well previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well minimal and should be rejected by shareholders. Micron wants to fork out all around 1.10x gross sales for Lexar although the industry chief SanDisk https://www.washingtonpost.com/newssearch/?query=소액결제 (SNDK) is investing at four.35x sales. Lexar also contains a $four hundred million patent infringement lawsuit against Toshiba that it had Formerly received but has become subject to an attractiveness by Toshiba.
Think it over in this manner, An effective $four hundred million settlement in favor of Lexar would equate to all-around $four.eighty three for every share in supplemental hard cash to include to The existing $0.fifty four in cost-free hard cash 신용카드현금화 following financial debt that Lexar has. This means Micron would fork out under $5 a share for Lexars property, which happens to be lower.
There may be also speculation that SanDisk is significantly serious about using a operate at acquiring Lexar. This may sound right because SanDisk would solidify its Management placement.
Furthermore, SanDisk has a close Performing romantic relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to obtain Lexar.
Keep tune. A Distinctive shareholder meeting to assessment the takeover bid has long been moved to June 16. In my see, the $10 bid undervalues Lexar. Dilemma is will a white knight area?