On Friday, flash media maker Lexar Media (LEXR) obtained a greater revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-inventory exchange provide at all around $ten a share, up marginally with the Original bid.
But important shareholders including billionaire Trader Carl Icahn coupled with hedge cash and portfolio professionals have considered the First bid to be inappropriate. Elliott Associates believes the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is really worth involving $one.five billion and $two.4 billion. The estimate is nicely earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too reduced and really should be rejected by shareholders. Micron would like to pay all-around one.10x revenue for Lexar when the industry leader SanDisk (SNDK) is investing at 4.35x revenue. Lexar also features a $four hundred million patent infringement lawsuit in opposition to Toshiba that it experienced Earlier received but is currently matter to an enchantment by Toshiba.
Give it some thought by doing this, An effective $four hundred million settlement in favor of Lexar would equate to about $4.83 for each share in additional money to add to The existing $0.fifty four in cost-free hard cash following personal debt that Lexar has. What this means is Micron would fork out below $five a share for Lexars https://www.washingtonpost.com/newssearch/?query=소액결제 property, that's minimal.
There exists also speculation that SanDisk is severely thinking about having a run at acquiring Lexar. This is able to sound right due to the fact SanDisk would solidify its Management position.
In addition, SanDisk has a detailed Operating romance with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Remain tune. A Specific shareholder meeting to assessment the takeover bid continues to be moved to June 16. In my look at, the $ten bid undervalues 정보이용료 Lexar. Problem is will a white knight surface?