On Friday, flash media maker Lexar Media (LEXR) received a higher revised takeover bid from Micron Technologies (MU). The revised bid areas the all-inventory exchange offer at all-around $ten a share, up marginally through the initial bid.
But key shareholders which includes billionaire investor Carl Icahn coupled with hedge cash and portfolio administrators have considered the initial bid to get inappropriate. Elliott Associates believes the First bid “substantially undervalues Lexar,” and feels Lexar is well worth amongst $one.five billion and $2.4 billion. The estimate is nicely previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well reduced and needs to be turned down by shareholders. Micron wishes to pay back close to 1.10x revenue for Lexar while the market leader SanDisk (SNDK) is trading at 4.35x revenue. Lexar also provides a $400 million patent infringement lawsuit from Toshiba that it experienced previously gained but is now issue to an charm by Toshiba.
Consider it in this manner, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $four.83 for every share in additional cash to incorporate https://en.wikipedia.org/wiki/?search=소액결제 to the current $0.54 in no cost cash 소액결제현금화 just after financial debt that Lexar has. This means Micron would spend lower than $five a share for Lexars assets, which can be lower.
There exists also speculation that SanDisk is very seriously thinking about having a operate at obtaining Lexar. This might make sense because SanDisk would solidify its Management place.
Additionally, SanDisk has a close Doing work romantic relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to accumulate Lexar.
Remain tune. A Distinctive shareholder Conference to review the takeover bid is moved to June 16. In my look at, the $ten bid undervalues Lexar. Dilemma is will a white knight surface area?