On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock Trade give at around $10 a share, up marginally within the Original bid.
But major shareholders such as billionaire investor 소액결제정책 Carl Icahn coupled with hedge money and portfolio professionals have considered the Preliminary bid for being inappropriate. Elliott Associates thinks the First bid “significantly undervalues Lexar,” and feels Lexar is worthy of in between $one.5 billion and $2.four billion. The estimate is perfectly above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way too minimal and has to be rejected by shareholders. Micron wishes to pay out all over one.10x profits for Lexar even though the industry leader SanDisk (SNDK) is buying and selling at four.35x product sales. Lexar also includes a $400 million patent infringement lawsuit towards Toshiba that it had Beforehand won but has become subject matter to an enchantment by Toshiba.
Think about it by doing this, a successful $four hundred million settlement in favor of Lexar would equate to close to $four.83 for each share in supplemental income to add to The existing $0.fifty four in cost-free hard cash just after debt that Lexar has. What this means is Micron would shell out less than $five a share for Lexars belongings, that is reduced.
There's also speculation that SanDisk is severely pondering using a run at acquiring Lexar. This might make sense due to the fact SanDisk would solidify its Management position.
Moreover, SanDisk has an in depth working partnership with Toshiba, which could see SanDisk drop or reduce the settlement if it managed http://www.bbc.co.uk/search?q=소액결제 to acquire Lexar.
Remain tune. A Unique shareholder Conference to critique the takeover bid has become moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Dilemma is will a white knight surface area?