On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Technological innovation (MU). The revised bid spots the all-inventory Trade provide at all over $ten a share, up marginally with the Original bid.
But main shareholders like billionaire investor Carl Icahn in conjunction with hedge money and portfolio professionals have considered the Preliminary bid for being inappropriate. Elliott Associates thinks the initial bid “noticeably http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 undervalues Lexar,” and feels Lexar is truly worth among $one.five billion and $2.four billion. The estimate is effectively earlier mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way too reduced and should be rejected by shareholders. Micron wishes to pay out all over one.10x income for Lexar though the marketplace leader SanDisk (SNDK) is buying and selling at 4.35x income. Lexar also contains a $four hundred million patent infringement lawsuit versus Toshiba that it experienced Earlier gained but has become topic to an enchantment by Toshiba.
Think it over using this method, a successful $four hundred million settlement in favor of Lexar would equate to about $four.83 for each share in supplemental cash to incorporate to the current $0.fifty four in cost-free hard cash just after personal debt that Lexar has. What this means http://xn--7y2br0oc8jnkbb1f.kr/ is Micron would fork out a lot less than $five a share for Lexars belongings, that's low.
There's also speculation that SanDisk is severely pondering having a operate at acquiring Lexar. This might sound right considering the fact that SanDisk would solidify its Management position.
What's more, SanDisk has a close Performing romantic relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to obtain Lexar.
Stay tune. A Particular shareholder Conference to evaluation the takeover bid is moved to June 16. In my perspective, the $ten bid undervalues Lexar. Problem is will a white knight floor?