On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technology (MU). The revised bid places the all-stock exchange provide at all over $10 a share, up marginally from the First bid.
But major shareholders like billionaire investor Carl Icahn in conjunction with hedge funds and portfolio administrators have deemed the First bid to be inappropriate. Elliott Associates thinks the Original bid “considerably undervalues Lexar,” and feels Lexar is truly worth in between $one.5 billion and $two.four billion. The estimate is effectively above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too low and has to be turned down by shareholders. Micron hopes to pay back all around 1.10x profits for Lexar while the marketplace chief SanDisk (SNDK) is investing at four.35x sales. Lexar also incorporates a $400 million patent infringement lawsuit against Toshiba that it experienced Earlier gained but is currently matter to an attractiveness by Toshiba.
Give it some thought this way, A prosperous $four hundred million settlement in favor of Lexar would equate to around $four.83 for each share in additional funds to add to The present $0.fifty four in free money just after financial debt that Lexar has. This implies Micron would pay out a lot less http://edition.cnn.com/search/?text=소액결제 than $5 정보이용료 a share for Lexars property, which is minimal.
There is certainly also speculation that SanDisk is critically contemplating using a operate at getting Lexar. This might make sense due to the fact SanDisk would solidify its Management place.
What's more, SanDisk has a close working relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to obtain Lexar.
Keep tune. A special shareholder Assembly to critique the takeover bid has long been moved to June 16. In my perspective, the $ten bid undervalues Lexar. Query is will a white knight surface?