On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technologies (MU). The revised bid areas the all-stock Trade provide at all-around $10 a share, up marginally in the First bid.
But major shareholders like billionaire investor Carl Icahn coupled with hedge cash and portfolio professionals have deemed the Preliminary bid to generally be inappropriate. Elliott Associates thinks the initial bid “drastically undervalues Lexar,” and feels Lexar is really worth between $one.five billion and $2.4 billion. The estimate is very well over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too reduced and must be rejected by shareholders. Micron would like to shell out all around one.10x sales for Lexar whilst the marketplace chief SanDisk (SNDK) is investing at 4.35x product sales. Lexar also features a $four hundred million patent infringement lawsuit against Toshiba that it experienced previously received but is now subject matter to an charm by Toshiba.
Consider it this fashion, a successful $four hundred million settlement in favor of Lexar would equate to about $four.eighty three for each share in supplemental hard cash to incorporate to The present $0.fifty four in absolutely free hard cash soon after credit card debt that Lexar has. This suggests Micron would fork out below $five a share for Lexars property, which can be small.
There exists also speculation that SanDisk is critically contemplating taking a run at acquiring Lexar. This is able to sound right considering http://edition.cnn.com/search/?text=소액결제 that SanDisk would solidify its Management placement.
Also, SanDisk has an in depth working connection with Toshiba, which could see SanDisk drop or decrease the settlement if it 소액결제현금화 managed to obtain Lexar.
Continue to be tune. A special shareholder Conference to evaluate the takeover bid is moved to June 16. In my see, the $10 bid undervalues Lexar. Issue is will a white knight area?