On Friday, flash media maker Lexar Media (LEXR) received a greater revised takeover bid from Micron Technological know-how (MU). The revised bid spots the all-stock exchange offer at close to $ten a share, up marginally through the initial bid.
But important shareholders including billionaire investor Carl Icahn together with hedge resources and portfolio professionals have deemed the First bid to become inappropriate. Elliott Associates thinks the Original bid “significantly undervalues Lexar,” and feels Lexar is truly worth among $1.five billion and $2.four billion. The estimate is well above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is 정보이용료 way way too reduced and has to be turned down by shareholders. Micron would like to shell out all over 1.10x profits for Lexar whilst the market leader SanDisk (SNDK) is investing at 4.35x profits. Lexar also has a $400 million patent infringement lawsuit towards Toshiba that it had previously gained but has become topic to an appeal by Toshiba.
Think about it this fashion, a successful $four hundred million settlement in favor of Lexar would equate to close to $4.eighty three for each share in further hard cash to incorporate to The existing $0.fifty four in cost-free money just after credit card debt that Lexar has. What this means is Micron would pay out below $five a share for Lexars belongings, which happens to be reduced.
There is certainly also speculation that SanDisk is severely serious about using a operate at acquiring Lexar. This may seem sensible considering the fact that SanDisk would solidify its leadership place.
Also, SanDisk has an in depth Performing romantic relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.
Keep tune. A special shareholder Conference to review the takeover bid continues to be moved http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 to June 16. In my see, the $ten bid undervalues Lexar. Concern is will a white knight area?