On Friday, flash media maker Lexar Media (LEXR) been given a better revised takeover bid from Micron Technology (MU). The revised bid spots the all-inventory exchange give at about $10 a share, up marginally through the Original bid.
But big shareholders together with billionaire investor Carl Icahn along with hedge money and portfolio managers have considered the Original bid to get inappropriate. Elliott Associates thinks the Original bid “noticeably undervalues Lexar,” and feels Lexar is well worth between $one.five billion and here $two.4 billion. The estimate is very well above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too small and must be rejected by shareholders. Micron really wants to fork out all over one.10x income for Lexar when the industry leader SanDisk (SNDK) is investing at four.35x sales. Lexar also contains a $four hundred million patent infringement lawsuit from Toshiba that it had Formerly gained but has become topic to an enchantment by Toshiba.
Consider it in this manner, An effective $four hundred million settlement in favor of Lexar would equate to around $4.83 for each share in further hard cash to add to The existing $0.fifty four in free dollars following personal debt that Lexar has. This implies Micron would pay back fewer than $5 a share for Lexars property, that's reduced.
You can find also speculation that SanDisk is seriously thinking about using a run at buying Lexar. This might seem sensible considering that SanDisk would solidify its leadership placement.
What's more, SanDisk has a close working connection with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Continue to be tune. A https://www.washingtonpost.com/newssearch/?query=소액결제 Distinctive shareholder Conference to evaluation the takeover bid has been moved to June sixteen. In my perspective, the $10 bid undervalues Lexar. Issue is will a white knight surface?