On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-stock Trade supply at all over $10 a share, up marginally with the initial bid.
But significant shareholders which includes billionaire investor Carl Icahn as well as hedge funds and portfolio professionals have deemed the initial bid to generally be inappropriate. Elliott Associates thinks the initial bid “noticeably undervalues Lexar,” and feels Lexar is worth in between $1.five billion and $2.4 billion. The estimate is perfectly earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too small and really should be turned down by shareholders. Micron really wants to pay back about one.10x gross sales for Lexar although the market leader SanDisk (SNDK) is trading at four.35x sales. Lexar also provides a $four hundred million patent infringement lawsuit versus Toshiba that it experienced Beforehand received but is now matter to an charm by Toshiba.
Give it some thought in this way, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $4.83 per share in extra funds to incorporate to The present $0.54 in free income right after personal debt that Lexar has. What this means is Micron would pay back lower than $five a share for Lexars property, and that is minimal.
There is also speculation that SanDisk is very seriously thinking of using a run at buying Lexar. This may sound right given that SanDisk would solidify its leadership place.
Moreover, SanDisk has a close Operating partnership with Toshiba, which could see SanDisk fall or reduce the settlement 소액결제정책 if it managed https://en.search.wordpress.com/?src=organic&q=소액결제 to acquire Lexar.
Stay tune. A Exclusive shareholder meeting to overview the takeover bid is moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Question is will a white knight surface?