On Friday, flash media https://en.search.wordpress.com/?src=organic&q=소액결제 maker Lexar Media (LEXR) been given a greater revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock Trade give at about $ten a share, up marginally in the Preliminary bid.
But major shareholders which include billionaire investor Carl Icahn along with hedge funds and portfolio managers have deemed the First bid for being inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is well worth in between $1.five billion and $two.four billion. The estimate is effectively previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too minimal and must be turned down by shareholders. Micron hopes to shell out about one.10x gross sales for Lexar even though the market leader SanDisk (SNDK) is trading at four.35x product sales. Lexar also has a $400 million patent infringement lawsuit against Toshiba that it experienced Beforehand received but has become issue to an charm by Toshiba.
Think it over using this method, A prosperous $400 million settlement in favor of Lexar would equate to around $4.eighty three per share in more money to incorporate to the current $0.fifty four in cost-free cash immediately after personal debt that Lexar has. This suggests Micron http://xn--7y2br0oc8jnkbb1f.kr/ would shell out less than $5 a share for Lexars property, which can be lower.
There may be also speculation that SanDisk is severely considering getting a operate at buying Lexar. This would seem sensible given that SanDisk would solidify its Management situation.
In addition, SanDisk has a detailed Performing marriage with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to acquire Lexar.
Remain tune. A Exclusive shareholder meeting to review the takeover bid has been moved to June sixteen. In my view, the $10 bid undervalues Lexar. Question is will a white knight surface?