On Friday, flash media maker Lexar Media (LEXR) obtained a higher revised takeover bid from Micron Engineering (MU). The revised bid areas the all-stock Trade offer you at all-around $10 a share, up marginally from your Preliminary bid.
But big shareholders which include billionaire investor Carl Icahn coupled with hedge funds and portfolio supervisors have considered the Original bid being inappropriate. Elliott Associates believes the First bid “significantly undervalues Lexar,” and feels Lexar is well worth concerning $one.five billion and $two.four billion. The estimate is effectively earlier 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 should be turned down by shareholders. Micron hopes to spend about 1.10x gross sales for Lexar while the industry chief SanDisk (SNDK) is investing at 4.35x gross sales. Lexar also provides a $400 million patent infringement lawsuit from Toshiba that it had Beforehand received but is currently issue to an attractiveness by Toshiba.
Think about it this fashion, An effective $400 million settlement in favor of Lexar would equate to around $four.83 for every share in added funds so as to add to The existing $0.fifty four in free income following financial debt that Lexar has. This implies https://en.wikipedia.org/wiki/?search=소액결제 Micron would pay back less than $five a share for Lexars assets, which can be lower.
You can find also speculation that SanDisk is very seriously thinking of having a run at attaining Lexar. This is able to make sense considering the fact that SanDisk would solidify its Management situation.
What's more, SanDisk has a http://xn--7y2br0oc8jnkbb1f.kr/ detailed working connection with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to acquire Lexar.
Stay tune. A Particular shareholder Assembly to review the takeover bid has been moved to June 16. In my see, the $10 bid undervalues Lexar. Concern is will a white knight floor?