On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Technological innovation (MU). The revised bid spots the all-inventory exchange offer at close to $10 a share, up marginally in the initial bid.
But important shareholders together with billionaire Trader Carl Icahn along with hedge cash and portfolio professionals have deemed the initial bid to become inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is well worth in between $1.five billion and $2.4 billion. The estimate is well higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way also minimal and should be rejected by shareholders. Micron would like to pay out all around 1.10x sales for Lexar even though the market leader http://edition.cnn.com/search/?text=소액결제 SanDisk (SNDK) is investing at 4.35x sales. Lexar also incorporates a $400 million patent infringement lawsuit from Toshiba that it experienced Formerly received but is now matter to an enchantment by Toshiba.
Consider it this way, An effective $four hundred million settlement in favor of Lexar would equate to all around $4.83 per share in further money to include to The present $0.54 in cost-free hard cash after credit card debt that Lexar has. What this means is Micron would pay under $5 a share for Lexars assets, which can be small.
There's also speculation that SanDisk is seriously pondering getting a run at getting Lexar. This could sound right due to the fact SanDisk would solidify its Management posture.
Additionally, SanDisk has a detailed Doing the job romance with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to obtain Lexar.
Keep tune. A Exclusive shareholder Conference to assessment the takeover bid continues to be moved to June sixteen. In 소액결제정책 my watch, the $ten bid undervalues Lexar. Problem is will a white knight surface?