On Friday, flash media maker Lexar Media (LEXR) been given the next revised takeover bid from Micron Technological know-how 소액결제정책 (MU). The revised bid destinations the all-stock exchange present at all over $ten a share, up marginally from your Original bid.
But major shareholders like billionaire investor Carl Icahn coupled with hedge cash and portfolio supervisors have considered the Original bid being inappropriate. Elliott Associates believes the First bid “drastically undervalues Lexar,” and feels Lexar is well worth amongst $1.5 billion and $two.four billion. The estimate is effectively previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too lower and should be turned down by shareholders. Micron desires to shell out about 1.10x profits for Lexar when the marketplace chief SanDisk (SNDK) is investing at four.35x revenue. Lexar also has a $400 million patent infringement lawsuit against Toshiba that it had Formerly won but is now subject to an attraction by Toshiba.
Give it some thought using this method, a successful $400 million settlement in favor of Lexar would equate to about $4.eighty three per share in supplemental dollars so as to add to the current $0.fifty four in totally free income just after credit card debt that Lexar has. This implies Micron would pay back under $5 a share for Lexars belongings, that's small.
There is also speculation that SanDisk is very seriously thinking of having a run at obtaining Lexar. This is able to seem sensible given that SanDisk would solidify its leadership place.
Also, SanDisk has a close working relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to accumulate Lexar.
Continue to be tune. A special shareholder Conference to evaluation the takeover bid is moved to June sixteen. In http://www.bbc.co.uk/search?q=소액결제 my look at, the $10 bid undervalues Lexar. Concern is will a white knight floor?