On Friday, flash media maker Lexar Media (LEXR) obtained a better revised takeover bid from Micron Engineering (MU). The revised bid areas the all-inventory exchange supply at about $ten a share, up marginally from your Preliminary bid.
But significant shareholders such as billionaire investor Carl Icahn together with hedge cash and portfolio supervisors have deemed the Original bid to become inappropriate. Elliott Associates believes the First bid “drastically undervalues Lexar,” and feels Lexar is truly worth involving $one.five 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 far too reduced and needs to be turned down by shareholders. Micron wishes to pay back all-around 1.10x sales for Lexar even though the market leader SanDisk (SNDK) is buying and selling at four.35x sales. Lexar https://www.washingtonpost.com/newssearch/?query=소액결제 also features a $four hundred million patent infringement lawsuit from Toshiba that it experienced Formerly gained but has become topic to an charm by Toshiba.
Think about it using this method, A prosperous $400 million settlement in favor of Lexar would equate to around $4.eighty three for each share in further income to incorporate to The existing $0.54 in absolutely free cash immediately after financial debt that Lexar has. What this means is Micron would pay fewer than $5 a share for Lexars assets, that's very low.
There is certainly also speculation that SanDisk is severely pondering getting a operate at getting Lexar. This might make sense considering the fact that SanDisk would solidify its Management placement.
What's more, SanDisk has a close Performing partnership with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Keep tune. A Distinctive shareholder Assembly to evaluation the takeover bid has been moved to June sixteen. In my look at, the $ten bid undervalues Lexar. Dilemma 소액결제정책 is will a white knight area?