On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Know-how (MU). The revised bid areas the all-stock exchange give at 정보이용료 all over $10 a share, up marginally through the initial bid.
But major shareholders together with billionaire investor Carl Icahn in addition to hedge money and portfolio managers have deemed the Original bid to become inappropriate. Elliott Associates thinks the initial bid “appreciably undervalues Lexar,” and feels Lexar is worth amongst $one.five billion and $2.four billion. The estimate is perfectly higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way too minimal and ought to be turned down by shareholders. Micron wants to shell out all-around one.10x product sales http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 for Lexar although the industry leader SanDisk (SNDK) is investing at four.35x gross sales. Lexar also features a $400 million patent infringement lawsuit in opposition to Toshiba that it experienced previously won but has become matter to an attraction by Toshiba.
Think about it in this manner, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $four.eighty three per share in more income to add to The present $0.fifty four in no cost income soon after financial debt that Lexar has. This means Micron would pay back under $5 a share for Lexars property, which can be lower.
There is also speculation that SanDisk is significantly pondering using a run at attaining Lexar. This might make sense considering the fact that SanDisk would solidify its leadership place.
Furthermore, SanDisk has a detailed Functioning partnership with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.
Remain tune. A Unique shareholder Conference to assessment the takeover bid has become moved to June 16. In my view, the $10 bid undervalues Lexar. Concern is will a white knight surface?