On Friday, flash media maker Lexar Media (LEXR) obtained a better revised takeover bid from Micron Engineering (MU). The revised bid destinations the all-stock Trade present at all-around $ten a share, up marginally from the Preliminary bid.
But main shareholders which include billionaire investor Carl Icahn together with hedge money and portfolio supervisors have deemed the initial bid to be inappropriate. Elliott Associates believes the Original bid “appreciably undervalues Lexar,” and feels Lexar is worth among $1.five billion and $two.4 billion. The estimate is effectively earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also small and 소액결제정책 ought to be rejected by shareholders. Micron really wants to spend about 1.10x profits for Lexar while the industry chief SanDisk (SNDK) is investing at 4.35x revenue. Lexar also incorporates a $four hundred million patent infringement lawsuit versus Toshiba that it experienced Earlier received but is now issue to an attraction by Toshiba.
Consider it by doing this, An effective $four hundred million settlement in favor of Lexar would equate to all over $four.eighty three for each share in further hard cash so as to add to The existing $0.fifty four in free hard cash right after personal debt that Lexar has. What this means is Micron would spend less than $5 a share for Lexars assets, which can be low.
You can find also speculation that SanDisk is http://www.thefreedictionary.com/소액결제 significantly considering using a operate at acquiring Lexar. This could sound right considering the fact that SanDisk would solidify its Management placement.
Furthermore, SanDisk has a detailed Operating romantic relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to accumulate Lexar.
Stay tune. A Exclusive shareholder meeting to overview the takeover bid has been moved to June sixteen. In my view, the $10 bid undervalues Lexar. Problem is will a white knight surface area?