On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technological innovation (MU). The revised bid areas the all-stock Trade supply at all around $10 a share, up marginally within the First bid.
But significant shareholders which includes billionaire Trader Carl Icahn in conjunction with hedge resources and portfolio professionals have considered the Original bid for being inappropriate. Elliott Associates thinks the Original bid “significantly undervalues Lexar,” and feels Lexar is value involving $1.5 billion and $two.four billion. The estimate is very well previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is 소액결제현금화 way too reduced and should be turned down by shareholders. Micron hopes to pay back about one.10x revenue for Lexar though the market leader SanDisk (SNDK) is investing at 4.35x profits. Lexar also has a $400 million patent infringement lawsuit towards Toshiba that it experienced Earlier won but is now matter to an enchantment by Toshiba.
Give it some thought this fashion, An effective $400 million settlement in favor of Lexar would equate to all around $four.eighty three for each share in further hard cash to add to the current $0.fifty four in no cost hard cash right after debt that Lexar has. This means Micron would pay a lot less than $five a share for Lexars assets, that's minimal.
There's also speculation that SanDisk is seriously pondering using a operate at attaining Lexar. This might make sense due to the fact SanDisk would solidify its Management placement.
What's more, SanDisk has a close working relationship with Toshiba, which could see SanDisk fall http://www.bbc.co.uk/search?q=소액결제 or reduce the settlement if it managed to accumulate Lexar.
Keep tune. A special shareholder meeting to overview the takeover bid has been moved to June 16. In my see, the $ten bid undervalues Lexar. Issue is will a white knight surface?