On Friday, flash media maker Lexar Media (LEXR) received a better revised takeover bid from Micron Know-how (MU). The revised bid sites the all-stock Trade present at all-around $10 a share, up marginally from the initial bid.
But significant shareholders which includes billionaire Trader Carl Icahn along with hedge resources and portfolio supervisors have deemed the initial bid to generally be inappropriate. Elliott Associates believes the initial bid “noticeably undervalues Lexar,” and feels Lexar is value amongst $one.five billion and $two.four billion. The estimate is nicely over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way too minimal and must be rejected by shareholders. Micron wishes to shell out all around 1.10x profits for Lexar when the marketplace leader SanDisk (SNDK) is investing at four.35x gross sales. Lexar also incorporates a $400 million patent infringement lawsuit from Toshiba that it had previously gained but has become subject to an appeal by Toshiba.
Consider it this way, a successful $four hundred million settlement in favor of Lexar would equate to around $four.83 for every share in supplemental 정보이용료 dollars to add to the current $0.fifty four https://en.wikipedia.org/wiki/?search=소액결제 in absolutely free income just after credit card debt that Lexar has. This means Micron would pay below $five a share for Lexars property, and that is very low.
There may be also speculation that SanDisk is seriously contemplating having a operate at acquiring Lexar. This may make sense because SanDisk would solidify its leadership situation.
In addition, SanDisk has a close working relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Remain tune. A special shareholder Conference to evaluate the takeover bid has actually been moved to June 16. In my see, the $10 bid undervalues Lexar. Issue is will a white knight surface area?