On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Technologies (MU). The revised bid areas the all-inventory Trade provide at close to $10 a share, up marginally within the Original bid.
But major shareholders such as billionaire Trader Carl Icahn as well as hedge money and portfolio supervisors have considered the Preliminary bid to be inappropriate. Elliott Associates believes the First bid “significantly undervalues Lexar,” and feels Lexar is worthy of between $one.five billion and $2.4 billion. The estimate is perfectly over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too low and should be rejected by shareholders. Micron really wants to pay all-around 1.10x profits for Lexar while the market leader SanDisk (SNDK) is http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 buying and selling at four.35x profits. Lexar also features a $four hundred million patent infringement lawsuit against Toshiba that it experienced previously won but is currently matter to an enchantment by Toshiba.
Think about it using this method, An effective $400 million settlement in favor of Lexar would equate to all-around $4.83 per share in added income to include to the current $0.54 in cost-free dollars soon after credit card debt that Lexar has. This means Micron would spend less than $5 a share for Lexars belongings, that is minimal.
There may be also speculation that SanDisk is significantly thinking about using a run at obtaining Lexar. This might make sense considering that SanDisk would solidify its Management position.
What's more, SanDisk has a detailed Doing the job connection with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Keep tune. A special shareholder meeting to critique the takeover bid has actually been moved to 소액결제현금화 June 16. In my check out, the $10 bid undervalues Lexar. Issue is will a white knight area?