On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Technological know-how (MU). The revised bid places the all-stock Trade supply at around $ten a share, up marginally through the Original bid.
But main shareholders together with billionaire investor Carl Icahn coupled with hedge money and portfolio professionals have considered the Original bid to be inappropriate. Elliott Associates thinks the initial bid “significantly undervalues Lexar,” and feels Lexar is worth amongst $one.5 billion and $2.four billion. The estimate is properly above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way too very low and should be rejected by shareholders. Micron really wants to pay about one.10x revenue for Lexar though the marketplace leader SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also incorporates a $four hundred million patent infringement lawsuit towards Toshiba that it experienced Formerly won but has become issue to an enchantment by Toshiba.
Consider it in this manner, An effective $400 million settlement in favor of Lexar would equate to all over $4.83 for every share in added cash to add to the current $0.fifty four in free of charge dollars right after credit card debt that Lexar has. This means Micron would pay back fewer than $five a share for Lexars 신용카드현금화 belongings, that's very low.
There may be also speculation that SanDisk is severely thinking of using a operate https://en.search.wordpress.com/?src=organic&q=소액결제 at buying Lexar. This may sound right due to the fact SanDisk would solidify its Management situation.
What's more, SanDisk has an in depth Doing the job relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Keep tune. A Specific shareholder Conference to evaluate the takeover bid has long been moved to June 16. In my check out, the $ten bid undervalues Lexar. Problem is will a white knight surface?