On Friday, https://en.wikipedia.org/wiki/?search=소액결제 flash media maker Lexar Media (LEXR) gained a higher 소액결제정책 revised takeover bid from Micron Technologies (MU). The revised bid destinations the all-stock exchange give at all over $10 a share, up marginally with the Preliminary bid.
But main shareholders which include billionaire Trader Carl Icahn in conjunction with hedge funds and portfolio supervisors have considered the Preliminary bid to become inappropriate. Elliott Associates believes the Original bid “appreciably undervalues Lexar,” and feels Lexar is well worth between $1.5 billion and $two.four 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 too reduced and ought to be rejected by shareholders. Micron wishes to fork out all around 1.10x profits for Lexar even though the market leader SanDisk (SNDK) is investing at 4.35x gross sales. Lexar also includes a $four hundred million patent infringement lawsuit versus Toshiba that it had previously gained but is now matter to an enchantment by Toshiba.
Give it some thought this fashion, An effective $400 million settlement in favor of Lexar would equate to close to $4.eighty three for every share in additional hard cash to incorporate to The present $0.54 in cost-free funds just after financial debt that Lexar has. This implies Micron would pay out below $five a share for Lexars property, that's lower.
There's also speculation that SanDisk is severely considering having a run at getting Lexar. This would make sense considering that SanDisk would solidify its Management situation.
In addition, SanDisk has a close Operating romantic relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to accumulate Lexar.
Stay tune. A Distinctive shareholder meeting to evaluation the takeover bid continues to be moved to June sixteen. In my see, the $10 bid undervalues Lexar. Problem is will a white knight surface?