On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Know-how (MU). The revised bid locations the all-inventory Trade present at about $10 a share, up marginally from the initial bid.
But major shareholders such as billionaire Trader Carl Icahn in conjunction with hedge cash and portfolio supervisors have deemed the initial bid to get inappropriate. Elliott Associates thinks the First bid “considerably undervalues Lexar,” and feels Lexar is value among $1.5 billion and $two.four billion. The estimate is perfectly over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too reduced and should be rejected by shareholders. Micron would like to shell out all over 1.10x profits for Lexar though the market chief SanDisk (SNDK) is investing at four.35x product sales. Lexar also features a $400 million patent infringement lawsuit versus Toshiba that it had Formerly won but is now subject to an attractiveness by Toshiba.
Consider it this way, A prosperous $400 million settlement in favor of Lexar would equate to all over $four.83 for each share in supplemental cash to incorporate to the current $0.fifty https://en.wikipedia.org/wiki/?search=소액결제 four in cost-free dollars after credit card debt that Lexar has. This means Micron would fork out 소액결제현금화 a lot less than $5 a share for Lexars property, which happens to be minimal.
You can find also speculation that SanDisk is very seriously serious about taking a operate at attaining Lexar. This is able to seem sensible since SanDisk would solidify its Management situation.
Additionally, SanDisk has a detailed Functioning connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Continue to be tune. A Specific shareholder Conference to evaluation the takeover bid continues to be moved to June 16. In my view, the $10 bid undervalues Lexar. Problem is will a white knight surface?