On Friday, flash media maker Lexar Media (LEXR) acquired an increased revised takeover bid from Micron Technologies (MU). The revised bid spots the all-stock exchange offer you at around $10 a share, up marginally from your initial bid.
But key shareholders which include billionaire investor Carl Icahn in addition to hedge resources and portfolio managers have considered the Original bid to be inappropriate. Elliott Associates believes the initial bid “substantially undervalues Lexar,” and feels Lexar is really worth concerning $1.five billion and $2.4 billion. The estimate is very well higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too lower and must be rejected by shareholders. Micron wishes to spend close to 1.10x product sales for Lexar whilst the market leader SanDisk (SNDK) is buying and selling at four.35x product sales. Lexar also incorporates a $400 million patent infringement lawsuit towards Toshiba that it http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 experienced previously won but is now topic to an charm by Toshiba.
Give it some thought this fashion, An effective $four hundred million settlement in favor of Lexar would equate to about $4.83 for every share in further money to add to the 신용카드현금화 current $0.54 in totally free income after financial debt that Lexar has. What this means is Micron would shell out less than $five a share for Lexars assets, and that is minimal.
There may be also speculation that SanDisk is critically serious about having a run at attaining Lexar. This may make sense because SanDisk would solidify its Management posture.
In addition, SanDisk has an in depth Functioning relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to accumulate Lexar.
Stay tune. A Particular shareholder Assembly to review the takeover bid is moved to June 16. In my watch, the $ten bid undervalues Lexar. Problem is will a white knight floor?