On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from 소액결제정책 Micron Engineering (MU). The revised bid destinations the all-inventory Trade present at around $10 a share, up marginally in the Original bid.
But key shareholders including billionaire investor Carl Icahn coupled with hedge money and portfolio professionals have deemed the initial bid to generally be inappropriate. Elliott Associates believes the First bid “considerably undervalues Lexar,” and feels Lexar is truly worth amongst $1.five billion and $two.four billion. The estimate is perfectly previously mentioned the revised takeover bid of about $827 million.
I have to http://edition.cnn.com/search/?text=소액결제 concur and say the revised takeover bid is way much too small and really should be turned down by shareholders. Micron wishes to spend all over 1.10x product sales for Lexar though the industry leader SanDisk (SNDK) is trading at 4.35x revenue. Lexar also includes a $400 million patent infringement lawsuit against Toshiba that it experienced Beforehand gained but has become issue to an appeal by Toshiba.
Give it some thought using this method, a successful $400 million settlement in favor of Lexar would equate to around $4.83 for each share in more income so as to add to the current $0.54 in totally free hard cash following credit card debt that Lexar has. This suggests Micron would pay out under $five a share for Lexars assets, and that is reduced.
There is also speculation that SanDisk is seriously contemplating having a run at getting Lexar. This would make sense since SanDisk would solidify its Management place.
What's more, SanDisk has a detailed Doing work relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Remain tune. A Exclusive shareholder Assembly to review the takeover bid continues to be moved to June sixteen. In my see, the $10 bid undervalues Lexar. Query is will a white knight floor?