On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Technologies (MU). The revised bid areas the all-inventory Trade offer you at all-around $ten a share, up marginally from your First bid.
But significant shareholders 소액결제현금화 like billionaire Trader Carl Icahn as well as hedge money and portfolio managers have considered the Original bid to get inappropriate. Elliott Associates thinks the initial bid “drastically undervalues Lexar,” and feels Lexar is well worth in between $1.5 billion and $two.four billion. The estimate is properly higher http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well lower and needs to be rejected by shareholders. Micron wishes to spend close to one.10x revenue for Lexar though the industry chief SanDisk (SNDK) is buying and selling at four.35x gross sales. Lexar also contains a $four hundred million patent infringement lawsuit towards Toshiba that it had Beforehand gained but is currently subject matter to an attractiveness by Toshiba.
Think about it in this manner, a successful $four hundred million settlement in favor of Lexar would equate to all around $four.eighty three per share in further dollars to add to the current $0.fifty four in totally free cash after financial debt that Lexar has. This suggests Micron would pay out less than $5 a share for Lexars belongings, and that is lower.
There is also speculation that SanDisk is seriously pondering getting a operate at acquiring Lexar. This could seem sensible due to the fact SanDisk would solidify its leadership place.
Additionally, SanDisk has a close Doing work partnership with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Stay tune. A Exclusive shareholder Conference to evaluate the takeover bid is moved to June sixteen. In my see, the $10 bid undervalues Lexar. Issue is will a white knight surface area?