On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technology (MU). The revised bid destinations the all-stock exchange provide at close to $ten a share, up marginally through the Preliminary bid.
But important shareholders which includes billionaire Trader Carl Icahn as well as hedge resources and portfolio supervisors have deemed the Preliminary bid to be inappropriate. Elliott Associates believes the initial bid “drastically undervalues Lexar,” and feels Lexar is really worth among $1.5 billion and $2.4 billion. The estimate is well higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well low and really should be turned down by shareholders. Micron wants to fork out around 1.10x gross sales for Lexar though the industry leader SanDisk (SNDK) is buying and selling at 4.35x gross sales. Lexar also features a $400 million patent infringement lawsuit from Toshiba that it experienced Earlier won but is currently matter to an attractiveness by Toshiba.
Think it over this fashion, a successful $400 million settlement in favor of Lexar would equate to about $four.83 for every share in added cash to include to The present $0.fifty four in no cost hard cash just after debt that Lexar has. This implies Micron would pay under $5 a https://www.washingtonpost.com/newssearch/?query=소액결제 share for Lexars assets, and that is reduced.
There's also speculation that SanDisk is very seriously thinking about using a run at acquiring Lexar. This might seem sensible considering that SanDisk would solidify its leadership situation.
Moreover, SanDisk has an in 신용카드현금화 depth Doing the job marriage with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to obtain Lexar.
Continue to be tune. A Particular shareholder Assembly to overview the takeover bid has actually been moved to June 16. In my watch, the $10 bid undervalues Lexar. Concern is will a white knight floor?