On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Know-how (MU). The revised bid areas https://www.washingtonpost.com/newssearch/?query=소액결제 the all-inventory Trade give at around $10 a share, up marginally in the First bid.
But significant shareholders including billionaire investor Carl Icahn as well as hedge funds and portfolio managers have deemed the Preliminary bid to generally be inappropriate. Elliott Associates believes 정보이용료 the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is worthy of between $one.five billion and $two.4 billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well small and needs to be turned down by shareholders. Micron desires to spend all over one.10x product sales for Lexar whilst the marketplace leader SanDisk (SNDK) is investing at 4.35x income. Lexar also includes a $four hundred million patent infringement lawsuit against Toshiba that it experienced Formerly received but is now subject matter to an attraction by Toshiba.
Give it some thought this way, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.eighty three for every share in more money to add to the current $0.54 in absolutely free hard cash immediately after credit card debt that Lexar has. This implies Micron would shell out fewer than $five a share for Lexars assets, and that is low.
You can find also speculation that SanDisk is critically thinking about using a operate at acquiring Lexar. This might make sense given that SanDisk would solidify its Management placement.
Furthermore, SanDisk has a close Doing the job relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Keep tune. A Exclusive shareholder meeting to overview the takeover bid is moved to June 16. In my see, the $10 bid undervalues Lexar. Problem is will a white knight floor?