On Friday, flash media maker Lexar Media (LEXR) been given the next revised takeover bid from Micron Technology (MU). The revised bid destinations the all-stock exchange supply at all around $ten a share, up marginally from your initial bid.
But key shareholders which includes billionaire investor Carl Icahn as well as hedge money and portfolio supervisors have considered the Original bid to get inappropriate. Elliott Associates thinks the First bid “significantly undervalues Lexar,” and feels Lexar is worthy of concerning $1.five billion and $2.four billion. The estimate is well higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way too reduced and really should be turned down by shareholders. Micron hopes to pay all-around one.10x profits for Lexar when the market leader SanDisk (SNDK) is trading at 4.35x gross sales. Lexar also contains a $400 million patent infringement lawsuit against Toshiba that it experienced Formerly gained but is now topic to an appeal by Toshiba.
Think it over by doing this, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $four.eighty three for every share in added cash to incorporate to the current $0.54 in absolutely free income 소액결제현금화 soon after credit card debt that Lexar has. This means Micron would fork out less than $five a share for Lexars belongings, that's small.
There's also speculation that SanDisk is seriously contemplating getting a run at getting Lexar. This might seem sensible considering the fact that SanDisk would solidify its Management position.
Also, SanDisk has an http://edition.cnn.com/search/?text=소액결제 in depth working partnership with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to accumulate Lexar.
Keep tune. A special shareholder Assembly to critique the takeover bid has actually been moved to June 16. In my watch, the $10 bid undervalues Lexar. Problem is will a white knight surface area?