On Friday, flash media maker Lexar Media (LEXR) acquired an increased revised takeover bid from Micron Technology (MU). The revised bid locations the all-inventory Trade provide at all over $ten a share, up marginally from the Original bid.
But main shareholders like billionaire Trader Carl Icahn in addition to hedge funds and portfolio professionals have deemed the Preliminary bid being inappropriate. Elliott Associates believes the initial bid “appreciably undervalues Lexar,” and feels Lexar is truly worth among $one.5 billion and $two.4 billion. The estimate is effectively above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way too very low and really should be turned down by shareholders. Micron hopes to spend all over one.10x profits for Lexar whilst the market leader SanDisk (SNDK) is investing at 4.35x product sales. Lexar also features a $four hundred million patent infringement lawsuit versus Toshiba that it had previously gained but is now issue to an attraction by Toshiba.
Think it over by doing this, A prosperous $four hundred million settlement in favor of Lexar would equate http://www.thefreedictionary.com/소액결제 to close to $four.eighty three per share in additional money to incorporate to The existing $0.fifty four in absolutely free money after credit card debt that Lexar has. This implies Micron would 정보이용료 pay back fewer than $five a share for Lexars property, that is low.
There's also speculation that SanDisk is very seriously pondering taking a run at attaining Lexar. This is able to seem sensible considering the fact that SanDisk would solidify its Management situation.
Also, SanDisk has an in depth Doing the job connection with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to acquire Lexar.
Remain tune. A Particular shareholder meeting to overview the takeover bid has become moved to June 16. In my look at, the $10 bid undervalues Lexar. Concern is will a white knight surface?