On Friday, flash media maker Lexar Media (LEXR) obtained an increased revised takeover bid from Micron Engineering (MU). The revised bid destinations the all-inventory exchange offer at all over $ten a share, up marginally in the initial bid.
But big shareholders including billionaire investor Carl Icahn together with hedge money and portfolio supervisors have deemed the Preliminary bid to become inappropriate. Elliott Associates believes the First bid “significantly undervalues Lexar,” and feels Lexar is value in between $one.five billion and $2.four billion. The estimate is effectively over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well low and really should be rejected by shareholders. Micron desires to pay out all around one.10x income for Lexar when the marketplace chief SanDisk (SNDK) is buying and selling at four.35x product sales. Lexar also has a $400 million patent infringement lawsuit towards Toshiba that it had Beforehand gained but is currently topic to an enchantment by Toshiba.
Consider it this fashion, An effective $400 million settlement in favor of Lexar would equate to all over $four.eighty three per share in additional money to include to the current $0.54 in no cost money following credit card 정보이용료 debt that Lexar has. This implies Micron would shell out a lot less than $five a share for Lexars assets, which is lower.
There is also speculation that SanDisk is severely considering using a run at obtaining Lexar. This might sound right due to the fact SanDisk would solidify its leadership situation.
Furthermore, SanDisk has a detailed Operating partnership with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to accumulate Lexar.
Continue to be tune. A Unique shareholder meeting to https://www.washingtonpost.com/newssearch/?query=소액결제 evaluation the takeover bid has actually been moved to June 16. In my view, the $ten bid undervalues Lexar. Query is will a white knight surface?