On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 bid from Micron Know-how (MU). The revised bid locations the all-stock exchange supply at close to $10 a share, up marginally with the initial bid.
But key shareholders including billionaire investor Carl Icahn together with hedge cash and portfolio managers have deemed the initial bid being inappropriate. Elliott Associates thinks the initial bid “noticeably undervalues Lexar,” and feels Lexar is value amongst $1.5 billion and $two.4 billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well small and needs to be turned down by shareholders. Micron wants to fork out all around one.10x profits for Lexar although the marketplace chief SanDisk (SNDK) is buying and selling at four.35x income. Lexar also features a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Formerly won but has become matter to an charm by Toshiba.
Give it some thought this way, A prosperous $four hundred million settlement in favor of Lexar would equate to all-around $four.83 for each share in extra money to incorporate to the current $0.54 in free of charge income following credit card debt that Lexar has. This implies Micron would pay back below $5 a share for Lexars property, which happens to be very low.
There may be also speculation that SanDisk is seriously pondering getting a operate at acquiring Lexar. This might sound right given that SanDisk would solidify its Management place.
What's more, SanDisk has a close Doing work romance with Toshiba, which could see SanDisk 소액결제정책 drop or reduce the settlement if it managed to obtain Lexar.
Stay tune. A Particular shareholder Assembly to assessment the takeover bid has long been moved to June sixteen. In my view, the $ten bid undervalues Lexar. Problem is will a white knight area?