On Friday, flash media maker Lexar Media (LEXR) been given a better revised takeover bid from Micron Engineering (MU). The revised bid destinations the all-inventory Trade provide at http://www.thefreedictionary.com/소액결제 all over $10 a share, up marginally with the First bid.
But significant shareholders such as billionaire Trader Carl Icahn as well as hedge resources and portfolio managers have deemed the initial bid to become inappropriate. Elliott Associates believes the First bid “considerably undervalues Lexar,” and feels Lexar is worthy of among $one.five billion and $2.4 billion. The estimate is very well previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too lower and should be turned down by shareholders. Micron wants to fork out around one.10x income for Lexar although the market leader SanDisk (SNDK) is trading at four.35x profits. Lexar also incorporates a $400 million patent infringement lawsuit towards Toshiba that it had Formerly gained but is currently subject matter to an attraction by Toshiba.
Think about it using this method, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.83 for every share in extra income to incorporate to The existing $0.fifty four in absolutely free dollars right after debt that Lexar has. This means Micron would fork out fewer than $five a share for Lexars assets, that's lower.
There may be also speculation that SanDisk is critically serious about having a run at obtaining Lexar. This may sound right considering the fact that SanDisk would solidify its leadership situation.
Additionally, SanDisk has an in depth get more info working relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Continue to be tune. A Exclusive shareholder Assembly to review the takeover bid has become moved to June sixteen. In my look at, the $10 bid undervalues Lexar. Query is will a white knight surface area?