On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Technology (MU). The revised bid destinations the all-inventory Trade present at all around $10 a share, up marginally with the First bid.
But major shareholders together with billionaire investor Carl Icahn in conjunction with hedge funds and portfolio supervisors have deemed the Preliminary bid to get inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is value between $one.5 billion and $2.four billion. The estimate is very well previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also low and ought to be turned down by shareholders. Micron wishes to pay back about 1.10x product sales for Lexar whilst the marketplace chief SanDisk (SNDK) is trading at four.35x sales. Lexar also features a $four hundred million patent infringement lawsuit versus Toshiba that it had Earlier gained but is currently subject to an enchantment by Toshiba.
Consider it using this method, An effective $400 million settlement in favor of Lexar would equate to around $four.eighty three for each 정보이용료 share in extra hard cash so as to add to The existing $0.fifty four in free dollars immediately after personal debt that Lexar has. This means Micron would pay lower than $five a share for Lexars property, that http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 is lower.
There exists also speculation that SanDisk is critically contemplating having a operate at attaining Lexar. This would seem sensible considering the fact that SanDisk would solidify its Management place.
Also, SanDisk has a close Doing the job relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to acquire Lexar.
Keep tune. A Particular shareholder Conference to review the takeover bid has become moved to June sixteen. In my view, the $10 bid undervalues Lexar. Problem is will a white knight floor?