On Friday, flash media maker Lexar Media (LEXR) been given the next revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-stock Trade give at around $ten a share, up marginally from your First bid.
But big shareholders including billionaire Trader Carl Icahn along with hedge funds and portfolio professionals have considered the Preliminary bid for being inappropriate. Elliott Associates believes the Original bid “drastically undervalues Lexar,” and feels Lexar is really worth involving $1.5 billion and $two.4 billion. The estimate is very well higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too very low and should be turned down by shareholders. Micron would like to fork out all-around 1.10x income for Lexar while the market leader SanDisk (SNDK) is trading at 4.35x profits. Lexar also contains a $400 million patent infringement lawsuit versus Toshiba that it experienced Earlier received but has become matter to an appeal by Toshiba.
Give it some thought in this way, An effective $400 million settlement in favor of Lexar would equate to all over $4.eighty three for every share in further dollars so as to add to the current $0.54 in free of charge funds soon after personal debt that Lexar has. This means Micron would pay back less than $five a share for Lexars assets, which happens to be http://www.bbc.co.uk/search?q=소액결제 very low.
There is certainly also speculation that SanDisk is seriously serious about taking a run at obtaining Lexar. This is able to seem sensible because SanDisk would solidify its Management place.
Furthermore, SanDisk has a close Performing connection with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Continue to be tune. A Specific shareholder meeting to assessment the takeover bid has actually been moved to June sixteen. In my check out, the $ten 소액결제현금화 bid undervalues Lexar. Problem is will a white knight floor?