On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Engineering (MU). The revised bid places the all-inventory exchange provide at around $10 a share, up marginally in the Preliminary bid.
But major shareholders such as billionaire Trader Carl Icahn in addition to hedge cash and portfolio administrators have considered the Original bid to be inappropriate. Elliott Associates believes the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is worth amongst $1.5 billion and $two.four billion. The estimate is properly http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also very low and ought to be rejected by shareholders. Micron hopes to shell out about one.10x gross sales for Lexar although the industry leader SanDisk (SNDK) is trading at 4.35x revenue. Lexar also provides a $400 million patent infringement lawsuit towards Toshiba that it had Formerly gained but is 정보이용료 currently issue to an attraction by Toshiba.
Think about it in this way, An effective $400 million settlement in favor of Lexar would equate to around $4.83 for each share in supplemental cash to include to The present $0.fifty four in no cost funds following credit card debt that Lexar has. This suggests Micron would spend less than $five a share for Lexars assets, which happens to be minimal.
There is also speculation that SanDisk is significantly serious about getting a run at attaining Lexar. This might seem sensible considering the fact that SanDisk would solidify its leadership place.
Additionally, SanDisk has a close Performing romance with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to acquire Lexar.
Stay tune. A Distinctive shareholder Assembly to critique the takeover bid has actually been moved to June 16. In my watch, the $ten bid undervalues Lexar. Problem is will a white knight floor?