On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover bid from Micron Technology (MU). The revised bid spots the all-inventory exchange provide at close to $ten a share, up marginally in the Original bid.
But big shareholders such as billionaire Trader Carl Icahn together with hedge money and portfolio supervisors have deemed the Preliminary bid to become inappropriate. Elliott Associates thinks the First bid “appreciably undervalues Lexar,” and feels Lexar is truly worth between $1.five billion and $two.4 billion. The estimate is nicely above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also low and should be rejected by shareholders. Micron desires to pay back http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 about 1.10x income for Lexar while the industry leader SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also features a $400 million patent infringement lawsuit versus Toshiba that it experienced previously gained but is currently matter to an attractiveness by Toshiba.
Consider it this way, An effective $four hundred million settlement in favor of Lexar would equate to about $four.83 for every share in additional money to add to the current $0.fifty four in free cash soon after debt that Lexar has. This suggests Micron would shell out fewer than $five a share for Lexars belongings, that's lower.
You can find also speculation that SanDisk is severely considering taking a operate at acquiring Lexar. This could seem sensible due to the fact SanDisk would solidify its Management situation.
Furthermore, SanDisk has an in depth Doing work partnership with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Stay tune. A Unique 소액결제현금화 shareholder meeting to review the takeover bid continues to be moved to June 16. In my perspective, the $10 bid undervalues Lexar. Dilemma is will a white knight floor?