On Friday, flash media maker Lexar Media (LEXR) obtained a better revised takeover bid from Micron Know-how (MU). The revised bid sites the all-inventory exchange give at all over $ten a share, up marginally within the initial bid.
But important shareholders such as billionaire investor Carl Icahn as well as http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 hedge money and portfolio administrators have considered the Original bid to become inappropriate. Elliott Associates thinks the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is worth among $1.five billion and $2.4 billion. The estimate is well higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too small and ought to be rejected by shareholders. Micron hopes to fork out all around one.10x profits for Lexar though the market leader SanDisk (SNDK) is investing at four.35x sales. Lexar also contains a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Beforehand won but has become subject to an attractiveness by Toshiba.
Give it some thought in this manner, An effective $four hundred million settlement in favor of Lexar would equate to all over $four.eighty three for each share in additional funds to incorporate to The present $0.54 in free of charge income after personal debt that Lexar has. This implies Micron would pay out fewer than $5 a share for Lexars belongings, which is very low.
There is also speculation that SanDisk is significantly contemplating getting a operate at acquiring Lexar. This could make sense considering the fact that SanDisk would solidify its Management posture.
Moreover, SanDisk has a close working marriage with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to accumulate Lexar.
Stay tune. A Unique shareholder Assembly to critique the takeover bid has become moved to June 16. In my view, the read more $10 bid undervalues Lexar. Problem is will a white knight area?