On Friday, flash media maker Lexar Media (LEXR) 신용카드현금화 received a higher revised takeover bid from Micron Technological know-how (MU). The revised bid locations the all-stock exchange supply at all-around $10 a share, up marginally through the First bid.
But key shareholders together with billionaire Trader Carl Icahn as well as hedge money and portfolio administrators have considered the Preliminary bid to be inappropriate. Elliott Associates thinks the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is well worth involving $1.five billion and $2.4 billion. The estimate is perfectly higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too low and has to be rejected by shareholders. Micron wants to pay out all-around 1.10x gross sales for Lexar though the marketplace leader SanDisk (SNDK) is investing at four.35x profits. Lexar also incorporates a $four hundred million patent infringement lawsuit towards Toshiba that it experienced previously gained but is now issue to an attractiveness by Toshiba.
Think about it using this method, An effective $400 million settlement in favor of Lexar would equate to all around $four.eighty three for each share in more dollars so as to add to The existing $0.54 in cost-free money soon after personal debt that Lexar has. This means Micron would spend less than $five a share for Lexars assets, which can be small.
There's also speculation that SanDisk is very seriously thinking of having a run at buying Lexar. This might sound right because SanDisk would solidify its Management position.
In addition, SanDisk has a detailed http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 Performing romantic relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to obtain Lexar.
Remain tune. A Unique shareholder Conference to review the takeover bid is moved to June 16. In my view, the $10 bid undervalues Lexar. Query is will a white knight surface?