On Friday, flash media maker Lexar Media (LEXR) acquired the next revised takeover bid from Micron Technologies (MU). The revised bid places the all-stock Trade offer at all-around $ten a share, up marginally with the initial bid.
But important shareholders including billionaire Trader Carl Icahn in addition to hedge money and portfolio administrators have deemed the Preliminary bid to get inappropriate. Elliott Associates thinks the Original bid “drastically undervalues Lexar,” and feels Lexar is really worth amongst $1.5 billion and $two.four billion. The estimate is perfectly previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too small and ought to be rejected by shareholders. Micron wants to fork out all-around 1.10x product sales for Lexar even though the industry chief SanDisk (SNDK) is buying and selling at 4.35x profits. Lexar also features a $four hundred million patent infringement lawsuit in opposition to Toshiba that it experienced previously gained but is now topic to an attractiveness by Toshiba.
Give it some thought this fashion, An effective $400 million settlement in favor of Lexar would equate to all around $4.83 for each share in extra funds to add to the current $0.54 in no cost income following financial debt that Lexar has. This suggests Micron would spend lower than $five a share for Lexars belongings, and that is low.
There is certainly also speculation that SanDisk is very seriously thinking about using a run at getting 소액결제현금화 Lexar. http://www.bbc.co.uk/search?q=소액결제 This could seem sensible considering that SanDisk would solidify its Management position.
Moreover, SanDisk has a close Performing marriage with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Remain tune. A special shareholder Assembly to overview the takeover bid continues to be moved to June sixteen. In my view, the $ten bid undervalues Lexar. Problem is will a white knight floor?