On Friday, flash media maker Lexar Media (LEXR) received an increased revised takeover bid from Micron Technological know-how (MU). The revised bid spots the all-inventory exchange offer at around $10 a share, up marginally from the First bid.
But main shareholders including billionaire investor Carl Icahn as well as 소액결제현금화 hedge money and portfolio administrators have deemed the Preliminary bid to generally be inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is well worth between $one.five billion and $two.4 billion. The estimate is nicely above the revised takeover bid of about $827 million. https://en.wikipedia.org/wiki/?search=소액결제
I have to concur and say the revised takeover bid is way too minimal and must be turned down by shareholders. Micron desires to spend all over 1.10x gross sales for Lexar though the industry chief SanDisk (SNDK) is investing at four.35x gross sales. Lexar also incorporates a $four hundred million patent infringement lawsuit against Toshiba that it experienced Formerly gained but has become subject matter to an attractiveness by Toshiba.
Give it some thought using this method, An effective $four hundred million settlement in favor of Lexar would equate to about $4.eighty three for every share in additional cash to add to The existing $0.fifty four in absolutely free cash soon after financial debt that Lexar has. This means Micron would pay a lot less than $five a share for Lexars belongings, that's reduced.
You can find also speculation that SanDisk is significantly thinking about taking a operate at buying Lexar. This would make sense considering that SanDisk would solidify its leadership placement.
Additionally, SanDisk has a detailed Performing relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to obtain Lexar.
Remain tune. A Specific shareholder Conference to review the takeover bid has become moved to June sixteen. In my view, the $10 bid undervalues Lexar. Dilemma is will a white knight surface area?