On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Technologies (MU). The revised bid places the all-inventory exchange supply at about $ten a share, up marginally in the First bid.
But main shareholders which includes billionaire Trader Carl Icahn as well as hedge cash and portfolio administrators have considered the Original bid to get inappropriate. Elliott 소액결제정책 Associates thinks the initial bid “considerably undervalues Lexar,” and feels Lexar is well worth involving $one.5 billion and $two.four billion. The estimate is perfectly over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too small and should be rejected by shareholders. Micron really wants to pay out close to 1.10x profits for Lexar when the marketplace leader SanDisk (SNDK) is trading at four.35x product sales. Lexar also features a $400 million patent infringement lawsuit from Toshiba that it had Beforehand gained but has become subject to an attractiveness by Toshiba.
Give it some thought in this manner, An effective $four hundred million settlement in favor of Lexar would equate to around $4.83 for every share in supplemental hard cash to include to The present $0.54 in totally free cash soon after financial debt that Lexar has. What this means is Micron would fork out fewer than $five a share for Lexars assets, that is reduced.
There is certainly also speculation that SanDisk is very seriously pondering taking a operate at getting Lexar. This could make sense due to the fact SanDisk would solidify its Management posture.
Also, SanDisk has a detailed Doing work marriage with Toshiba, which could see https://www.washingtonpost.com/newssearch/?query=소액결제 SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Remain tune. A Particular shareholder Conference to evaluate the takeover bid has been moved to June sixteen. In my watch, the $ten bid undervalues Lexar. Concern is will a white knight floor?