On Friday, flash media maker Lexar Media (LEXR) been given a greater revised takeover bid from Micron Technological know-how (MU). The revised bid spots the all-inventory Trade present at all around $ten a share, up marginally with the First bid.
But important shareholders which include billionaire Trader Carl Icahn together with hedge funds and portfolio managers have deemed the initial bid being inappropriate. Elliott Associates thinks the initial bid “significantly undervalues Lexar,” and feels Lexar is worth in between $1.five billion http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 and $2.4 billion. The estimate is very well above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too low and really should be turned down by shareholders. Micron really wants to pay all over 1.10x sales for Lexar though the market leader SanDisk (SNDK) is trading at four.35x income. Lexar also incorporates a $four hundred million http://xn--7y2br0oc8jnkbb1f.kr/ patent infringement lawsuit in opposition to Toshiba that it experienced Formerly gained but has become issue to an charm by Toshiba.
Think about it this fashion, a successful $400 million settlement in favor of Lexar would equate to about $4.eighty three per share in more funds so as to add to The present $0.fifty four in free of charge income just after credit card debt that Lexar has. What this means is Micron would fork out fewer than $five a share for Lexars belongings, which happens to be lower.
There may be also speculation that SanDisk is seriously thinking of getting a run at getting Lexar. This could make sense because SanDisk would solidify its leadership situation.
Also, SanDisk has a detailed Doing work 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 evaluate the takeover bid has actually been moved to June 16. In my view, the $ten bid undervalues Lexar. Dilemma is will a white knight surface?