On Friday, flash media maker Lexar Media (LEXR) acquired an increased revised takeover bid from Micron Technologies (MU). The revised bid spots the all-stock Trade provide at close to $ten a share, up marginally through the Original bid.
But main shareholders including billionaire Trader Carl Icahn along with hedge funds and portfolio managers have deemed the First bid being inappropriate. Elliott Associates believes the initial bid “appreciably undervalues Lexar,” and feels Lexar is truly worth in between $one.5 billion and $2.four billion. The estimate is perfectly earlier mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way much too minimal and has to be rejected by shareholders. Micron wishes to fork out close to 1.10x sales for Lexar when the marketplace leader SanDisk (SNDK) is buying and selling at four.35x sales. Lexar also incorporates a $four hundred million patent infringement lawsuit in opposition to Toshiba that it experienced previously won but is now subject matter to an attraction by Toshiba.
Think it over by doing this, a successful $400 million settlement in favor of Lexar would equate to all-around $four.eighty three for every https://www.washingtonpost.com/newssearch/?query=소액결제 share in supplemental dollars to incorporate to The present $0.54 in absolutely free dollars following debt that Lexar has. This implies Micron would fork out under $five a share for Lexars property, that's very low.
There may be also speculation that SanDisk is significantly thinking of using a run at getting Lexar. This may seem sensible due to the fact SanDisk would solidify its leadership place.
Furthermore, SanDisk has an in depth Operating romantic relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar.
Remain tune. A Specific shareholder meeting to overview the takeover bid continues http://xn--7y2br0oc8jnkbb1f.kr/ to be moved to June sixteen. In my perspective, the $10 bid undervalues Lexar. Query is will a white knight surface?