On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-stock Trade offer at close to $ten a share, up marginally through the Preliminary bid.
But significant shareholders such as billionaire Trader Carl Icahn together with hedge resources and portfolio administrators have deemed the First bid to be inappropriate. Elliott Associates believes the First bid “significantly undervalues Lexar,” and feels Lexar is worthy of involving $one.5 billion and $2.4 billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too very low and ought to be rejected by shareholders. Micron hopes to shell out close to one.10x income for Lexar although the industry chief SanDisk (SNDK) 소액결제현금화 is trading at four.35x product sales. Lexar also features a $400 million patent infringement lawsuit towards Toshiba that it experienced Formerly won but is currently topic to an appeal by Toshiba.
Think about it in this manner, An effective $four hundred million settlement in favor of Lexar would equate to about $4.83 for every share in additional hard cash to incorporate to The present $0.54 in absolutely free cash right after personal debt that Lexar has. This suggests Micron would shell out fewer than $five a share for Lexars property, and that is low.
There is also speculation that SanDisk is seriously thinking about having a operate at attaining Lexar. This might make sense given that SanDisk would solidify its Management place.
Moreover, SanDisk has a detailed Performing connection with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to acquire Lexar.
Remain tune. A special shareholder meeting to evaluate the takeover bid has been moved to June http://edition.cnn.com/search/?text=소액결제 16. In my see, the $10 bid undervalues Lexar. Issue is will a white knight surface?