On Friday, flash media maker Lexar Media (LEXR) obtained a greater revised takeover bid from Micron Technological know-how (MU). The revised bid locations the all-inventory Trade supply at about $ten a share, up marginally from your Original bid.
But key shareholders like billionaire Trader Carl Icahn as well as hedge funds and portfolio professionals have considered the Preliminary bid to get inappropriate. Elliott Associates believes the initial bid “significantly undervalues Lexar,” and feels Lexar is well worth concerning $1.five billion and $2.four billion. The estimate is well previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well low and has to be rejected by shareholders. Micron would like to pay back all over one.10x income for Lexar when the market chief SanDisk (SNDK) is buying and selling at four.35x income. Lexar also contains a $four hundred million patent infringement lawsuit against Toshiba that it experienced Beforehand received but is currently issue to an appeal by Toshiba.
Think about it in this way, An effective $400 million settlement in favor of Lexar would equate to close to $4.83 for every share in additional cash to incorporate to The present $0.54 in free money right after credit card http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 debt that 소액결제현금화 Lexar has. This implies Micron would pay below $five a share for Lexars property, which is low.
There may be also speculation that SanDisk is severely contemplating having a run at getting Lexar. This would sound right because SanDisk would solidify its leadership place.
Furthermore, SanDisk has an in depth Doing work romantic relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Keep tune. A Particular shareholder Assembly to review the takeover bid is moved to June 16. In my perspective, the $10 bid undervalues Lexar. Query is will a white knight surface area?