On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Technology (MU). The revised bid spots the all-inventory exchange give at close to $ten a share, up marginally through the Preliminary bid.
But big shareholders like billionaire investor Carl Icahn in conjunction with hedge money and portfolio supervisors have considered the initial bid for being inappropriate. Elliott Associates believes the Original bid “appreciably undervalues Lexar,” and feels Lexar is really worth in between $one.5 billion and $two.four 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 소액결제정책 way as well lower and ought to be turned down by shareholders. Micron wants to pay out all over 1.10x sales for Lexar when the marketplace chief SanDisk (SNDK) is investing at four.35x gross sales. Lexar also incorporates a $400 million patent infringement lawsuit versus Toshiba that it had Formerly won but is now subject matter to an attractiveness by Toshiba.
Give it some thought this fashion, a successful $four hundred million settlement in favor of Lexar would equate to close to $four.eighty three for each share in more money to include to the current $0.fifty four in absolutely free money following debt that Lexar has. This suggests Micron would spend lower than $five a share for Lexars assets, that is minimal.
There may be also speculation that SanDisk is significantly serious about getting a operate at obtaining Lexar. This would http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 make sense due to the fact SanDisk would solidify its leadership situation.
Moreover, SanDisk has a close Doing the job marriage with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar.
Keep tune. A Exclusive shareholder meeting to critique the takeover bid has long been moved to June 16. In my watch, the $10 bid undervalues Lexar. Issue is will a white knight surface area?