On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technologies (MU). The revised bid destinations the all-inventory Trade offer you at all around $ten a share, up marginally from your First bid.
But main shareholders such as billionaire investor Carl Icahn in addition to hedge funds and portfolio professionals have considered the First bid to be inappropriate. Elliott Associates thinks the Original bid “substantially undervalues Lexar,” and feels Lexar is value amongst $1.5 billion and $2.4 billion. The estimate is perfectly earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too very low and must be rejected by shareholders. Micron desires to shell out about 1.10x revenue for Lexar whilst the market leader SanDisk (SNDK) is investing at 4.35x product sales. Lexar also provides a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Earlier gained but is now subject matter to an appeal by Toshiba.
Consider it using this method, a successful $four hundred million settlement in favor of Lexar would equate to all around $4.83 for every share in more money so as to add to The present $0.54 in no cost hard cash immediately after credit card debt that Lexar has. This means Micron would pay back below $five a share for Lexars belongings, that's low.
There is also speculation that SanDisk is critically contemplating having a run at acquiring Lexar. This is able to make sense http://www.bbc.co.uk/search?q=소액결제 since SanDisk would solidify its leadership situation.
Additionally, SanDisk has a close Performing romance with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Continue to be tune. A Specific shareholder Assembly to evaluate the takeover bid has become moved to June sixteen. In my watch, the $ten bid 소액결제정책 undervalues Lexar. Question is will a white knight surface?