On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Technology (MU). The revised bid spots the all-stock exchange present at all over $ten a share, up marginally with the Preliminary bid.
But main shareholders together with billionaire Trader Carl Icahn together with hedge resources and portfolio 소액결제현금화 administrators have considered the Original bid to become inappropriate. Elliott Associates thinks the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is value involving $1.five billion and $2.four billion. The estimate is perfectly above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well very low and must be rejected by shareholders. Micron would like to spend all-around one.10x revenue for Lexar while the industry leader SanDisk (SNDK) is investing at four.35x profits. Lexar also features a $four hundred million patent infringement lawsuit in opposition to Toshiba that it experienced Formerly won but is now issue to an charm by Toshiba.
Think it over using this method, A prosperous $four hundred million settlement in favor of Lexar would equate to about $four.eighty three for every share in added income to incorporate to the current $0.54 in totally free cash soon after credit card debt that Lexar has. This suggests Micron would pay back below $5 a share for Lexars belongings, that's low.
There may be also speculation that SanDisk is significantly considering using a run at buying Lexar. This is able to make sense due to the fact http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 SanDisk would solidify its Management position.
Furthermore, SanDisk has an in depth Operating romance with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to acquire Lexar.
Continue to be tune. A Particular shareholder Assembly to assessment the takeover bid has long been moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Problem is will a white knight surface area?