On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover bid from Micron Technologies (MU). The revised bid places the all-inventory exchange offer at all over $10 a share, up marginally through the First bid.
But important shareholders like billionaire Trader Carl Icahn as well as hedge money and portfolio professionals have deemed the Preliminary bid for being inappropriate. Elliott Associates thinks the initial bid “substantially undervalues Lexar,” and feels Lexar is well worth among $1.five billion and $two.four billion. The estimate is nicely above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too low and really should be turned down by shareholders. Micron wants to pay all over one.10x sales for Lexar when the industry leader SanDisk (SNDK) is trading at four.35x sales. Lexar also contains a $four hundred million patent infringement lawsuit from Toshiba that it had previously won but is now issue to an attraction by Toshiba.
Consider it this fashion, A prosperous $400 million settlement in favor of Lexar would equate to all around $4.83 per share in added hard cash to incorporate to The present $0.fifty four in absolutely free money right after financial debt that Lexar has. This suggests http://www.thefreedictionary.com/소액결제 Micron would pay out lower than $5 a share for Lexars assets, that is minimal.
There is certainly also speculation that 소액결제정책 SanDisk is significantly thinking about having a operate at attaining Lexar. This could make sense since SanDisk would solidify its Management position.
Furthermore, SanDisk has an in depth Operating relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.
Continue to be tune. A Unique shareholder Assembly to critique the takeover bid continues to be moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Dilemma is will a white knight surface area?