On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-inventory Trade give at all-around $10 a share, up marginally from your Preliminary bid.
But main shareholders which includes billionaire Trader Carl Icahn as well as hedge resources and portfolio managers have deemed the Preliminary bid for being inappropriate. Elliott Associates believes the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is well worth concerning $1.five billion and $2.4 billion. The estimate is properly above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too low and ought to be turned down by shareholders. Micron would like to shell out close to one.10x gross sales for Lexar when the industry leader SanDisk (SNDK) is buying and selling at 4.35x product sales. Lexar also provides a $400 million patent infringement lawsuit in opposition to Toshiba that it experienced previously received but is now topic to an attraction by Toshiba.
Think it over this way, a successful $400 million settlement in favor of Lexar would equate to all-around $four.83 for each share in extra hard cash so as to add to the current $0.fifty four in absolutely free hard cash soon after debt that Lexar has. This implies Micron would shell out below $five a share for Lexars belongings, which happens to be minimal.
You can find also speculation that SanDisk is very seriously pondering having a operate at attaining Lexar. This may sound right considering the fact that SanDisk would solidify its leadership position.
Also, SanDisk has a 정보이용료 close Doing the job marriage with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to accumulate Lexar.
Continue to be tune. A Exclusive shareholder Conference to review the takeover bid http://edition.cnn.com/search/?text=소액결제 has been moved to June sixteen. In my look at, the $10 bid undervalues Lexar. Question is will a white knight floor?