On Friday, flash media maker Lexar Media (LEXR) been given the next revised takeover bid from Micron Know-how (MU). The revised bid destinations the all-inventory Trade offer at all over $ten a share, up marginally http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 within the Original bid.
But key shareholders together with billionaire Trader Carl Icahn together with hedge funds and portfolio professionals have considered the Original bid to generally be inappropriate. Elliott Associates thinks the initial bid “drastically undervalues Lexar,” and feels Lexar is value in between $one.5 billion and $two.4 billion. The estimate is properly over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too reduced and needs to be rejected by shareholders. Micron wishes to shell out all-around 1.10x gross sales for Lexar although the marketplace leader SanDisk (SNDK) is buying and selling at four.35x sales. Lexar also has a $400 million patent infringement lawsuit against Toshiba that it had previously received but is now subject to an enchantment by Toshiba.
Think about it by doing this, An effective $400 million settlement in favor of Lexar would equate to close to $4.eighty three for every share in more funds to include to The existing $0.fifty four in totally free funds soon after debt that Lexar has. What this means 소액결제정책 is Micron would pay below $five a share for Lexars property, which is reduced.
There exists also speculation that SanDisk is critically contemplating having a operate at acquiring Lexar. This might seem sensible since SanDisk would solidify its leadership posture.
Furthermore, SanDisk has a close Performing romance with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to amass Lexar.
Keep tune. A Distinctive shareholder meeting to assessment the takeover bid has become moved to June sixteen. In my look at, the $10 bid undervalues Lexar. Query is will a white knight surface area?