On Friday, flash media maker Lexar Media 신용카드현금화 (LEXR) received the next revised takeover bid from Micron Technological know-how (MU). The revised bid areas the all-inventory Trade offer at close to $10 a share, up marginally with the initial bid.
But important shareholders together with billionaire Trader Carl Icahn in conjunction with hedge funds and portfolio supervisors have considered the initial bid to get inappropriate. Elliott Associates believes the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is worthy of concerning $one.five billion and $2.4 billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too reduced and should be rejected by shareholders. Micron wants to fork out about 1.10x product sales for Lexar although the market leader SanDisk (SNDK) is investing at four.35x gross sales. Lexar also incorporates a $four hundred million patent infringement lawsuit versus Toshiba that it had Beforehand received but has become matter to an attractiveness by Toshiba.
Think it over by doing this, An effective $four hundred million settlement in favor of Lexar would equate to close to $four.83 for each share in further money to add to The present $0.54 in absolutely free cash immediately after credit card debt that Lexar has. This suggests Micron would spend a lot less than $5 a share for Lexars assets, and that is minimal.
There is also speculation that SanDisk is very seriously pondering using a run at buying Lexar. This would seem sensible considering the fact that SanDisk would solidify its Management place.
Also, SanDisk has a close Functioning romance with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to accumulate Lexar.
Keep tune. A Specific shareholder Assembly to assessment https://www.washingtonpost.com/newssearch/?query=소액결제 the takeover bid has become moved to June sixteen. In my watch, the $ten bid undervalues Lexar. Query is will a white knight area?