On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Technological innovation (MU). The revised bid spots the all-stock exchange give at about $10 a share, up marginally with the First bid.
But main shareholders including billionaire Trader Carl Icahn as well as hedge money and portfolio managers have deemed the initial bid for being inappropriate. Elliott Associates thinks the First bid “significantly undervalues Lexar,” and feels Lexar is worth among $one.five billion and $2.four billion. The estimate is nicely higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well low and ought to be turned down by shareholders. Micron really wants to spend all over one.10x product sales for Lexar even though the market chief SanDisk (SNDK) is trading at 4.35x income. Lexar also features a $400 million patent infringement lawsuit from Toshiba that it experienced Earlier received but is currently matter to an attractiveness by Toshiba.
Think it over in this way, a successful $four hundred million settlement in favor of Lexar would equate to about $4.eighty three for every share in more income to incorporate to the current $0.fifty four in absolutely free dollars just after credit card debt that Lexar has. This implies Micron would pay under $5 a share for Lexars property, which happens to be small.
You can find also speculation that SanDisk is 소액결제정책 significantly serious about having a operate at obtaining Lexar. This would sound right given that SanDisk would solidify its leadership posture.
Moreover, SanDisk has a detailed working romantic relationship with Toshiba, which could see SanDisk fall or lessen the settlement if http://edition.cnn.com/search/?text=소액결제 it managed to accumulate Lexar.
Continue to be tune. A Exclusive shareholder meeting to overview the takeover bid is moved to June sixteen. In my perspective, the $ten bid undervalues Lexar. Dilemma is will a white knight floor?