On Friday, flash media maker Lexar Media (LEXR) acquired the next revised takeover bid from Micron Technology (MU). The revised bid sites the all-stock Trade supply at around $10 a share, up marginally within the Original bid.
But important shareholders which include billionaire Trader Carl Icahn coupled with hedge resources and portfolio administrators have considered the Preliminary bid for being inappropriate. Elliott Associates believes the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is worthy of concerning $1.5 billion and $2.four billion. The estimate is perfectly previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well minimal and has to be rejected by shareholders. Micron desires to pay around 1.10x revenue for Lexar when the market leader http://www.bbc.co.uk/search?q=소액결제 SanDisk (SNDK) is buying and selling at 4.35x sales. Lexar also has a $four hundred million patent infringement lawsuit versus Toshiba that 소액결제정책 it had Beforehand won but is currently issue to an appeal by Toshiba.
Consider it in this way, A prosperous $400 million settlement in favor of Lexar would equate to all around $4.83 for each share in extra income to include to the current $0.54 in free of charge funds immediately after credit card debt that Lexar has. This means Micron would spend under $5 a share for Lexars belongings, which can be small.
You can find also speculation that SanDisk is seriously contemplating having a operate at buying Lexar. This could sound right considering that SanDisk would solidify its leadership posture.
What's more, SanDisk has a close Performing romantic relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to amass Lexar.
Stay tune. A Distinctive shareholder Assembly to evaluate the takeover bid has long been moved to June sixteen. In my see, the $ten bid undervalues Lexar. Question is will a white knight area?