On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-inventory exchange give at around $10 a share, up marginally in the First bid.
But important shareholders which include billionaire investor Carl Icahn in addition to hedge cash and portfolio supervisors have considered the Preliminary bid to get inappropriate. Elliott Associates believes the Original bid “significantly undervalues Lexar,” and feels Lexar is worth 소액결제현금화 in between $one.5 billion and $2.four billion. The estimate is nicely previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too lower and should be turned down by shareholders. Micron hopes to pay back all around 1.10x sales for Lexar even though the industry leader SanDisk (SNDK) is trading at 4.35x profits. http://edition.cnn.com/search/?text=소액결제 Lexar also incorporates a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Beforehand gained but is now subject to an charm by Toshiba.
Think about it in this manner, An effective $four hundred million settlement in favor of Lexar would equate to all-around $four.83 for every share in more cash to add to the current $0.fifty four in cost-free funds immediately after debt that Lexar has. This means Micron would pay out under $5 a share for Lexars belongings, which happens to be very low.
There's also speculation that SanDisk is very seriously thinking of getting a operate at getting Lexar. This would sound right given that SanDisk would solidify its Management situation.
Furthermore, SanDisk has an in depth Performing connection with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to obtain Lexar.
Remain tune. A special shareholder Assembly to overview the takeover bid has long been moved to June sixteen. In my perspective, the $10 bid undervalues Lexar. Dilemma is will a white knight surface area?