On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Technological innovation (MU). The revised bid areas the all-inventory Trade offer you at around $10 a share, up marginally within the Original bid.
But main shareholders like billionaire Trader Carl Icahn along with hedge money and portfolio professionals have deemed the Original bid to be inappropriate. Elliott Associates thinks the Original bid “significantly undervalues Lexar,” and feels Lexar is well worth in between $one.five billion and $two.4 billion. The estimate is effectively over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well minimal and ought to be turned down by shareholders. Micron would like to pay back all around one.10x product sales for Lexar even though the marketplace leader SanDisk (SNDK) is buying and selling at 4.35x revenue. Lexar also contains a $400 million patent infringement lawsuit towards Toshiba that it experienced Earlier won but is currently 신용카드현금화 topic to an charm by Toshiba.
Consider it this way, a successful $400 million settlement in favor of Lexar would equate to all around $four.eighty three for every share in more income to add to the current $0.54 in totally free dollars soon after credit card debt that Lexar has. This implies Micron would shell out https://www.washingtonpost.com/newssearch/?query=소액결제 lower than $5 a share for Lexars assets, and that is low.
There is certainly also speculation that SanDisk is very seriously contemplating taking a operate at getting Lexar. This might seem sensible considering the fact that SanDisk would solidify its leadership place.
Additionally, SanDisk has a detailed Doing work relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to amass Lexar.
Remain tune. A Unique shareholder Conference to review the takeover bid has actually been moved to June 16. In my look at, the $10 bid undervalues Lexar. Dilemma is will a white knight area?