On Friday, flash media maker Lexar Media (LEXR) received a higher revised takeover bid from Micron Technological innovation (MU). The revised bid sites the all-stock exchange give at around $ten a share, up marginally in the initial bid.
But key shareholders such as billionaire investor Carl Icahn together with hedge funds and portfolio supervisors have deemed the First bid for being inappropriate. Elliott Associates believes the initial bid “considerably undervalues Lexar,” and feels Lexar is well worth involving $1.5 billion and $two.4 billion. The estimate is very well above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too small and should be turned down by shareholders. Micron hopes to pay back all around one.10x product sales for Lexar when the marketplace chief SanDisk (SNDK) is trading at 4.35x revenue. Lexar also features a $four 소액결제정책 hundred million patent infringement lawsuit from Toshiba that it experienced Formerly won but is currently matter to an enchantment by Toshiba.
Think it over this way, a https://en.search.wordpress.com/?src=organic&q=소액결제 successful $400 million settlement in favor of Lexar would equate to all over $4.eighty three per share in extra hard cash so as to add to the current $0.fifty four in free of charge money immediately after financial debt that Lexar has. What this means is Micron would pay below $five a share for Lexars assets, which can be very low.
There may be also speculation that SanDisk is seriously considering getting a operate at getting Lexar. This would make sense given that SanDisk would solidify its Management posture.
Also, SanDisk has a detailed Doing work partnership with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Continue to be tune. A special shareholder meeting to review the takeover bid is moved to June 16. In my check out, the $10 bid undervalues Lexar. Question is will a white knight surface area?