On Friday, flash media maker Lexar Media (LEXR) obtained an increased revised takeover bid from Micron Technologies (MU). The revised bid destinations the all-stock exchange present at all over $ten a share, up marginally in the initial bid.
But main shareholders which includes billionaire Trader Carl Icahn in addition to hedge money and portfolio supervisors have considered the Original bid to generally be inappropriate. Elliott Associates believes the Original bid “substantially undervalues Lexar,” and feels Lexar is value amongst $one.five billion and $2.four billion. The estimate is nicely earlier mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well very low and ought to be turned down by shareholders. Micron wants to fork out all over 1.10x sales for Lexar though the market chief SanDisk (SNDK) is buying and selling at 4.35x income. Lexar also includes a $400 million patent infringement lawsuit against Toshiba that it experienced Earlier won but has become topic to an charm by Toshiba.
Give it some thought in this manner, a successful $400 million settlement in favor of Lexar would equate to about $4.83 per share in added income to add to The present $0.54 in absolutely free income just after debt that Lexar has. This implies Micron would http://www.bbc.co.uk/search?q=소액결제 pay back lower than $five a share for Lexars belongings, which happens to be lower.
There is also speculation that SanDisk is significantly thinking about using a operate at attaining Lexar. This might make sense considering that SanDisk would solidify its leadership place.
Furthermore, SanDisk has an in depth Operating relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to obtain Lexar.
Continue to be tune. A Unique shareholder Conference to evaluate the takeover bid has been moved to June 16. In my watch, the $ten bid undervalues Lexar. Issue is will 정보이용료 a white knight area?