On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technological innovation (MU). The revised bid spots the all-inventory exchange provide at close to $ten a share, up marginally through the initial bid.
But major shareholders together with billionaire investor Carl Icahn along with hedge cash and portfolio managers have considered the initial bid for being inappropriate. Elliott Associates thinks the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is well worth between $one.5 billion and $two.four billion. The estimate is very well higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too small and needs to be rejected by shareholders. Micron wants to pay about one.10x profits for Lexar while the marketplace chief SanDisk (SNDK) is buying and selling at 4.35x sales. Lexar also contains a $400 million patent infringement lawsuit versus Toshiba that it had Earlier won but is currently matter to an attraction by Toshiba.
Give it some thought this way, An effective $400 million settlement in favor of Lexar would equate to about $4.83 per share in more income to include to the current $0.54 in no cost funds just after credit card debt that Lexar has. This implies Micron would fork out below https://www.washingtonpost.com/newssearch/?query=소액결제 $five a share for Lexars property, which is lower.
You can find also speculation that SanDisk is seriously considering taking a operate at obtaining Lexar. This might seem sensible given that SanDisk would solidify its Management posture.
Moreover, SanDisk has an in depth Operating connection with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Stay tune. A special shareholder Conference to review the takeover bid has actually been moved to 소액결제정책 June sixteen. In my see, the $10 bid undervalues Lexar. Problem is will a white knight area?