On Friday, flash media maker Lexar Media (LEXR) received an increased revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-stock Trade present at all around $10 a share, up marginally through the First bid.
But significant shareholders together with billionaire investor Carl Icahn along with hedge cash and portfolio supervisors have deemed the First bid to become inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is value between $one.5 billion and $2.4 billion. The estimate is nicely higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too lower and must be rejected by shareholders. Micron would like to spend all-around 1.10x sales for Lexar whilst the industry leader SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also has a $400 million patent infringement lawsuit versus Toshiba that it had Earlier won but is now issue to an attractiveness by Toshiba.
Think about it in this way, A prosperous $400 million settlement in favor of http://edition.cnn.com/search/?text=소액결제 Lexar would equate to close to $four.83 per share in added income to add to The present $0.fifty four in absolutely free hard cash right 소액결제현금화 after financial debt that Lexar has. What this means is Micron would spend below $5 a share for Lexars assets, which is minimal.
There is certainly also speculation that SanDisk is critically serious about taking a operate at obtaining Lexar. This would make sense due to the fact SanDisk would solidify its Management position.
In addition, SanDisk has an in depth Doing work romantic relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to amass Lexar.
Keep tune. A Distinctive shareholder Assembly to evaluate the takeover bid is moved to June 16. In my view, the $ten bid undervalues Lexar. Query is will a white knight floor?