On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-stock exchange provide at all around $ten a share, up marginally within the First bid.
But main shareholders which includes billionaire Trader Carl Icahn as well as hedge cash and portfolio professionals have deemed the Preliminary bid to get inappropriate. Elliott Associates thinks the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is truly worth among $one.five billion and $2.four billion. The estimate is nicely previously here mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too minimal and must be turned down by shareholders. Micron wants to pay all over one.10x income for Lexar when the marketplace chief SanDisk (SNDK) is investing at 4.35x profits. Lexar also includes a $400 million patent infringement lawsuit against Toshiba that it experienced previously gained http://www.bbc.co.uk/search?q=소액결제 but has become topic to an enchantment by Toshiba.
Think it over in this manner, A prosperous $400 million settlement in favor of Lexar would equate to all over $4.eighty three for each share in further funds to include to the current $0.fifty four in no cost funds following credit card debt that Lexar has. What this means is Micron would pay less than $five a share for Lexars assets, which happens to be low.
There is also speculation that SanDisk is critically pondering getting a run at getting Lexar. This could seem sensible since SanDisk would solidify its leadership situation.
Furthermore, SanDisk has a close Functioning marriage with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to obtain Lexar.
Remain tune. A Particular shareholder Assembly to critique the takeover bid has actually been moved to June sixteen. In my look at, the $ten bid undervalues Lexar. Issue is will a white knight area?