On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Know-how (MU). The revised bid sites the all-stock exchange supply at all around $10 a http://edition.cnn.com/search/?text=소액결제 share, up marginally through the initial bid.
But key shareholders which includes billionaire investor Carl Icahn as well as 소액결제현금화 hedge cash and portfolio supervisors have considered the First bid to get inappropriate. Elliott Associates believes the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is truly worth amongst $one.5 billion and $2.4 billion. The estimate is effectively higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well low and must be rejected by shareholders. Micron really wants to fork out all over one.10x gross sales for Lexar even though the industry leader SanDisk (SNDK) is buying and selling at 4.35x sales. Lexar also contains a $four hundred million patent infringement lawsuit in opposition to Toshiba that it experienced previously won but has become issue to an attraction by Toshiba.
Consider it this fashion, An effective $400 million settlement in favor of Lexar would equate to all over $four.83 for every share in supplemental money to incorporate to The present $0.fifty four in free of charge money immediately after personal debt that Lexar has. This suggests Micron would shell out a lot less than $five a share for Lexars property, that is reduced.
There exists also speculation that SanDisk is critically contemplating having a operate at buying Lexar. This may sound right because SanDisk would solidify its Management situation.
Additionally, SanDisk has a close Functioning relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Remain tune. A Particular shareholder meeting to critique the takeover bid has been moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Query is will a white knight floor?