On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technological know-how (MU). The revised bid sites the all-stock Trade supply at all-around $10 a share, up marginally through the Preliminary bid.
But major shareholders which include billionaire investor Carl Icahn in conjunction with hedge resources and portfolio administrators have deemed the First bid to get inappropriate. Elliott Associates thinks the initial bid “considerably undervalues Lexar,” and feels Lexar is value concerning $1.5 billion and $2.four billion. The estimate is very well above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way too minimal and needs to be turned down by shareholders. Micron hopes to fork out all-around one.10x sales for Lexar when the marketplace chief SanDisk (SNDK) is investing at 4.35x income. Lexar also features a $four hundred million patent infringement lawsuit from Toshiba that it experienced Beforehand won but is now matter to an charm by Toshiba.
Think about it in this way, a successful $four hundred million settlement in favor of Lexar would equate to all around $4.83 for every share in extra hard cash to add to The present $0.54 in no cost hard cash just after financial debt that Lexar has. This suggests Micron would pay out fewer than $five a share for Lexars property, and that is minimal.
You can find also speculation that SanDisk is very seriously thinking about having a operate at obtaining Lexar. This would seem sensible due to the fact SanDisk would solidify its leadership placement.
In addition, SanDisk has a detailed http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 Operating partnership with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Remain 신용카드현금화 tune. A Distinctive shareholder meeting to review the takeover bid has been moved to June 16. In my watch, the $ten bid undervalues Lexar. Issue is will a white knight surface area?