On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technology (MU). The revised bid sites the all-inventory Trade supply at all over $ten a share, up marginally in the initial bid.
But major shareholders including billionaire Trader Carl Icahn together with hedge resources and portfolio administrators have considered the Preliminary bid to get inappropriate. Elliott Associates believes the First bid “substantially undervalues Lexar,” and feels Lexar is really worth amongst $one.five billion and $2.four billion. The estimate is nicely higher than the revised takeover http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 bid of about $827 million.
I must concur and say the revised takeover bid is way also lower and ought to be rejected by shareholders. Micron would like to shell out around 1.10x product sales for Lexar though the industry chief SanDisk (SNDK) is trading at 4.35x revenue. Lexar also incorporates a $four hundred million patent infringement lawsuit from Toshiba that it experienced Formerly gained but is currently subject to an appeal by Toshiba.
Consider it this fashion, a successful $four hundred million settlement in favor of Lexar would equate to all over $4.eighty three for each share in further hard cash to include to The present $0.fifty four in no cost money right after financial debt that Lexar has. This means Micron would pay under $five a share for Lexars property, which is reduced.
There may be also speculation that SanDisk is critically thinking of using a operate at getting Lexar. This might make sense given that 소액결제현금화 SanDisk would solidify its Management situation.
What's more, SanDisk has a close Operating romantic relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to amass Lexar.
Keep tune. A Unique shareholder Assembly to critique the takeover bid has actually been moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Dilemma is will a white knight surface area?