On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Know-how (MU). The revised bid locations the all-inventory Trade give at around $10 a share, up marginally from the Original bid.
But key shareholders like billionaire investor Carl Icahn in conjunction with hedge resources and portfolio professionals have considered the First bid for being inappropriate. Elliott Associates thinks the First bid “substantially undervalues Lexar,” and feels Lexar is value amongst $one.five billion and $two.four billion. The estimate is well over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too low and needs to be turned down by shareholders. Micron wishes to shell out all-around 1.10x sales for Lexar whilst the market chief SanDisk (SNDK) is trading at 4.35x income. Lexar also provides a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Beforehand gained but is now subject matter to an charm by Toshiba.
Consider it this way, A prosperous $four hundred million settlement in favor of Lexar would equate to around $four.83 per share in more money to include to The present $0.54 in free income just after credit card debt that Lexar has. This implies Micron would pay out below $five a share for Lexars property, which can be low.
There's also speculation that SanDisk is seriously thinking about getting a operate at getting Lexar. This is able to sound right given that SanDisk would solidify its Management position.
In addition, SanDisk has a detailed working connection with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar. http://xn--7y2br0oc8jnkbb1f.kr/
Stay tune. A special shareholder Conference to evaluation the takeover bid has become moved to June sixteen. In my http://www.bbc.co.uk/search?q=소액결제 view, the $10 bid undervalues Lexar. Query is will a white knight surface area?