On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid destinations the all-inventory exchange provide at around $ten a share, up marginally in the initial bid.
But big shareholders such as billionaire Trader Carl Icahn in conjunction with hedge funds and portfolio managers have deemed the initial bid to become inappropriate. Elliott Associates believes the initial bid “substantially undervalues Lexar,” and feels Lexar is worthy of involving $1.five billion and $two.four billion. The estimate is properly over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also minimal and really should be rejected by shareholders. Micron wants to pay out all over one.10x revenue for Lexar when the marketplace chief SanDisk (SNDK) is trading at 4.35x income. Lexar also features a $four hundred million patent infringement lawsuit against Toshiba that it had Formerly received but is currently subject to an attractiveness by Toshiba.
Consider it this fashion, a successful $400 million settlement in favor of Lexar would equate to around $four.83 per share in additional cash to incorporate to The existing $0.54 in free of charge cash immediately after 소액결제정책 debt that Lexar has. This implies Micron would pay back below $five a share for Lexars belongings, that's reduced.
There may be also speculation that SanDisk is severely thinking of getting a run at attaining Lexar. This would seem sensible because SanDisk would solidify its leadership situation.
Moreover, SanDisk has an in depth Doing work romance with Toshiba, which could https://en.wikipedia.org/wiki/?search=소액결제 see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Keep tune. A special shareholder meeting to critique the takeover bid continues to be moved to June sixteen. In my view, the $ten bid undervalues Lexar. Question is will a white knight floor?