On Friday, flash media maker Lexar Media (LEXR) gained the next revised takeover bid from Micron Technology (MU). The revised bid locations the all-stock exchange offer at around $10 a share, up marginally from your Original bid.
But major shareholders like billionaire Trader Carl Icahn coupled with hedge cash and portfolio supervisors have considered the Preliminary bid to be inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is value concerning $1.five billion and $2.4 billion. The estimate is perfectly higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too small and ought to be turned down by shareholders. Micron desires to pay http://edition.cnn.com/search/?text=소액결제 back all around 1.10x gross sales for Lexar although the market leader SanDisk (SNDK) is trading at 4.35x profits. Lexar also incorporates a $four hundred million patent infringement lawsuit towards Toshiba that it had previously 신용카드현금화 gained but is currently matter to an attraction by Toshiba.
Give it some thought using this method, a successful $400 million settlement in favor of Lexar would equate to all around $four.eighty three per share in further money to incorporate to The present $0.fifty four in totally free money soon after debt that Lexar has. This suggests Micron would pay lower than $5 a share for Lexars property, which can be minimal.
There is certainly also speculation that SanDisk is seriously contemplating taking a operate at buying Lexar. This is able to seem sensible given that SanDisk would solidify its leadership placement.
Also, SanDisk has an in depth Operating romance with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to acquire Lexar.
Keep tune. A Distinctive shareholder meeting to review the takeover bid has become moved to June sixteen. In my view, the $ten bid undervalues Lexar. Dilemma is will a white knight floor?