On Friday, flash media maker Lexar Media (LEXR) received a better revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-stock exchange give at close to $ten a http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 share, up marginally in the Preliminary bid.
But important shareholders together with billionaire Trader Carl Icahn as well as hedge cash and portfolio supervisors have considered the initial bid to generally be inappropriate. Elliott Associates believes the First bid “drastically undervalues Lexar,” and feels Lexar is really worth concerning $one.five billion and $two.4 billion. The estimate is very well higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too lower and really should be rejected by shareholders. Micron wishes to pay back close to one.10x revenue for Lexar although the industry leader SanDisk (SNDK) is buying and selling at four.35x product sales. Lexar also contains a $four hundred million patent infringement lawsuit against Toshiba that it experienced Beforehand won but is currently subject matter to an charm by Toshiba.
Think it over using this method, A prosperous $four hundred million settlement in favor of Lexar would equate to 소액결제정책 close to $four.83 for every share in further cash so as to add to the current $0.fifty four in free of charge money soon after debt that Lexar has. What this means is Micron would shell out less than $five a share for Lexars assets, which happens to be small.
There's also speculation that SanDisk is severely considering having a run at acquiring Lexar. This would sound right due to the fact SanDisk would solidify its leadership place.
What's more, SanDisk has a close Performing partnership with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.
Stay tune. A Particular shareholder meeting to review the takeover bid has been moved to June 16. In my perspective, the $ten bid undervalues Lexar. Problem is will a white knight floor?