On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Know-how (MU). The revised bid spots the all-inventory Trade offer you at around $ten a share, up marginally with the Preliminary bid.
But significant shareholders including billionaire investor Carl Icahn coupled with hedge funds and portfolio professionals have deemed the Preliminary bid being inappropriate. Elliott Associates thinks the Original bid “appreciably undervalues Lexar,” and feels Lexar is worthy of concerning $1.five billion and $two.4 billion. The estimate is well earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too reduced and really should be turned down by shareholders. Micron really wants to spend about 1.10x sales for Lexar when the market leader SanDisk (SNDK) is trading at 4.35x profits. Lexar also provides a $four hundred million patent infringement lawsuit against Toshiba that it experienced Earlier won but is currently matter to an enchantment by Toshiba.
Consider it this fashion, A prosperous $four hundred million settlement in favor of Lexar would equate to all-around $four.eighty three for every share in additional hard cash to incorporate to The existing $0.54 in totally free funds following debt that Lexar has. This implies Micron would shell out less than $five a share for Lexars property, that's minimal.
There exists also speculation that SanDisk is very seriously serious about taking a operate at attaining Lexar. This could make sense considering the fact that SanDisk https://www.washingtonpost.com/newssearch/?query=소액결제 정보이용료 would solidify its Management posture.
Also, SanDisk has an in depth Doing work relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Stay tune. A Unique shareholder Conference to review the takeover bid is moved to June 16. In my look at, the $10 bid undervalues Lexar. Concern is will a white knight area?