On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-stock Trade offer you at all around $ten a share, up marginally in the initial bid.
But main shareholders like billionaire Trader Carl Icahn in addition to hedge funds and portfolio administrators have deemed the Original bid to generally be inappropriate. Elliott Associates thinks the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is well worth amongst $one.5 billion and $2.four billion. The estimate is very well earlier mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too low and must be turned down by shareholders. Micron desires to pay out around one.10x gross sales for Lexar whilst the market chief SanDisk (SNDK) is investing at four.35x revenue. Lexar also has a $400 million patent infringement lawsuit against Toshiba that it had previously gained but has become matter to an attraction by Toshiba.
Consider it by doing this, An effective $four hundred million settlement in favor of Lexar would equate to close to $4.eighty three for every share in further hard https://www.washingtonpost.com/newssearch/?query=소액결제 cash to include to The present $0.54 in absolutely free hard cash right after debt that Lexar has. This means Micron would pay back lower than $5 a share for Lexars belongings, which can be small.
There's also speculation that SanDisk is significantly thinking about getting a run at buying Lexar. This may make sense considering that SanDisk would solidify its Management place.
Moreover, SanDisk has a close Functioning connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass 소액결제정책 Lexar.
Stay tune. A special shareholder meeting to critique the takeover bid has actually been moved to June sixteen. In my see, the $ten bid undervalues Lexar. Question is will a white knight surface area?