On Friday, flash media maker Lexar Media (LEXR) obtained a better revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock exchange supply at all-around $ten a share, up marginally through the Preliminary bid.
But main shareholders which includes billionaire investor Carl Icahn together with hedge funds and 소액결제정책 portfolio managers have considered the initial bid for being inappropriate. Elliott Associates believes the Original bid “considerably undervalues Lexar,” and feels Lexar is truly worth in between $one.five billion and $2.four billion. The estimate is well earlier mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well reduced and ought to be rejected by shareholders. Micron really wants to shell out about one.10x product sales for Lexar even though the marketplace chief SanDisk (SNDK) is investing at 4.35x gross sales. Lexar also features a $four hundred million patent infringement lawsuit against Toshiba that it experienced Earlier won but is now matter to an charm by Toshiba.
Give it some thought this way, a successful $400 million settlement in favor of Lexar would equate to close to $4.83 for each share in supplemental funds to add to the current $0.fifty four in no cost funds soon after financial debt that Lexar has. This means Micron would pay back a lot less than $5 a share for Lexars property, which is low.
There may be also speculation that SanDisk is severely thinking of getting a run at acquiring Lexar. This might seem sensible due to the fact SanDisk would solidify its leadership position.
In addition, SanDisk has an in depth Performing romantic relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to amass Lexar.
Continue to be tune. A http://edition.cnn.com/search/?text=소액결제 Unique shareholder meeting to critique the takeover bid has actually been moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Query is will a white knight surface area?