On Friday, flash media maker Lexar Media (LEXR) acquired an increased revised takeover bid from Micron Technologies (MU). The revised bid places the all-inventory exchange offer at close to $10 a share, up marginally in the initial bid.
But major shareholders which includes billionaire investor Carl Icahn along with hedge money and portfolio administrators have considered the Original bid being inappropriate. Elliott Associates thinks the Original bid “considerably undervalues Lexar,” and feels Lexar is worthy of amongst $one.5 billion and $2.4 billion. The estimate is properly higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also reduced and has to be rejected by shareholders. Micron wishes to pay out all over one.10x product sales for Lexar even though the industry chief SanDisk (SNDK) is investing at https://en.wikipedia.org/wiki/?search=소액결제 four.35x revenue. Lexar also incorporates a $400 million patent infringement lawsuit from Toshiba that it had Formerly won but is currently subject to an attractiveness by Toshiba.
Consider it in this way, An effective $four hundred million settlement in favor of Lexar would equate to all-around $four.83 for every share in further dollars to include to the current $0.fifty four in cost-free hard cash right after personal debt that Lexar has. This means Micron would spend fewer than $five a share for Lexars property, which is very low.
There exists also speculation that SanDisk is very seriously considering getting a run at buying Lexar. This could seem sensible because SanDisk would solidify its Management posture.
What's more, SanDisk has a detailed working marriage with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Keep tune. A special shareholder meeting to review the takeover bid has 정보이용료 been moved to June 16. In my watch, the $ten bid undervalues Lexar. Issue is will a white knight area?