On Friday, flash media maker Lexar Media (LEXR) acquired 소액결제정책 a higher revised takeover bid from Micron Technological http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 innovation (MU). The revised bid locations the all-stock Trade offer at about $10 a share, up marginally with the Preliminary bid.
But important shareholders which include billionaire investor Carl Icahn together with hedge resources and portfolio administrators have considered the Original bid to become inappropriate. Elliott Associates thinks the Original bid “considerably undervalues Lexar,” and feels Lexar is truly worth involving $one.five 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 too reduced and must be turned down by shareholders. Micron wants to pay close to 1.10x profits for Lexar even though the market chief SanDisk (SNDK) is trading at 4.35x sales. Lexar also includes a $400 million patent infringement lawsuit against Toshiba that it experienced Earlier received but is currently matter to an charm by Toshiba.
Think it over in this manner, An effective $400 million settlement in favor of Lexar would equate to about $four.83 for each share in more funds so as to add to The present $0.54 in totally free dollars immediately after financial debt that Lexar has. What this means is Micron would pay out less than $five a share for Lexars property, that's lower.
There may be also speculation that SanDisk is critically contemplating taking a operate at obtaining Lexar. This is able to seem sensible considering the fact that SanDisk would solidify its Management position.
Furthermore, SanDisk has an in depth working relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to amass Lexar.
Continue to be tune. A Specific shareholder meeting to overview the takeover bid continues to be moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Query is will a white knight surface area?