On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Know-how (MU). The revised bid destinations the all-inventory Trade supply at all around $ten a share, 신용카드현금화 up marginally from your initial bid.
But important shareholders together with billionaire Trader Carl Icahn in conjunction with hedge cash and portfolio managers have considered the initial bid to get inappropriate. Elliott Associates thinks the initial bid “substantially undervalues Lexar,” and feels Lexar is well worth between $1.5 billion and $2.4 billion. The estimate is very well above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too lower and ought to be turned down by shareholders. Micron wants to shell out close to one.10x revenue for Lexar when the industry leader SanDisk (SNDK) is trading at 4.35x revenue. Lexar also has a $400 million patent infringement lawsuit towards Toshiba that it had previously won but is now matter to an attractiveness by Toshiba.
Think it over in this way, A prosperous $400 million settlement in favor of Lexar would equate to close to $4.83 for every share in further funds to incorporate to the current $0.54 in no cost funds http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 soon after debt that Lexar has. This implies Micron would spend fewer than $5 a share for Lexars assets, which can be small.
There is also speculation that SanDisk is seriously thinking about taking a operate at attaining Lexar. This might sound right since SanDisk would solidify its leadership posture.
Also, SanDisk has a detailed working partnership with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to acquire Lexar.
Stay tune. A Particular shareholder Conference to review the takeover bid has long been moved to June 16. In my perspective, the $ten bid undervalues Lexar. Question is will a white knight floor?