On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technologies (MU). The revised bid locations the all-stock exchange supply at all-around $ten a share, up marginally within the initial bid.
But significant shareholders which includes billionaire investor Carl Icahn along with hedge funds and portfolio professionals have considered the First bid to become inappropriate. Elliott Associates believes the Preliminary bid “appreciably undervalues Lexar,” and feels Lexar is truly worth in between $one.5 billion and $two.four https://www.washingtonpost.com/newssearch/?query=소액결제 billion. The estimate is nicely above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way too lower and really should be turned down by shareholders. Micron wants to pay back close to one.10x profits for Lexar although the marketplace chief SanDisk (SNDK) is trading at 4.35x revenue. Lexar also includes a $four hundred million patent infringement lawsuit 소액결제현금화 from Toshiba that it experienced Earlier won but is now issue to an attraction by Toshiba.
Think it over by doing this, a successful $400 million settlement in favor of Lexar would equate to around $four.83 for each share in supplemental money to add to The existing $0.54 in totally free cash right after financial debt that Lexar has. This suggests Micron would shell out fewer than $five a share for Lexars belongings, that's low.
There exists also speculation that SanDisk is severely thinking of taking a run at getting Lexar. This might seem sensible considering that SanDisk would solidify its Management posture.
What's more, SanDisk has a detailed Operating romantic relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to acquire Lexar.
Continue to be tune. A special shareholder meeting to assessment the takeover bid has been moved to June sixteen. In my watch, the $10 bid undervalues Lexar. Question is will a white knight surface area?