On Friday, flash media maker Lexar Media (LEXR) received a greater revised takeover bid from Micron Technological know-how (MU). The revised bid locations the all-inventory exchange give at close to $ten a share, up marginally with the Original bid.
But significant shareholders including billionaire Trader Carl Icahn coupled with hedge cash and portfolio administrators have deemed the Original bid for being inappropriate. Elliott Associates believes the First bid “appreciably undervalues Lexar,” and feels Lexar is value between $one.5 billion and $2.four billion. The estimate is properly higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too small and must be rejected by shareholders. Micron would like to spend all around one.10x income for Lexar whilst the marketplace leader SanDisk (SNDK) is trading at four.35x product sales. Lexar also features a $400 million patent infringement lawsuit in opposition to Toshiba that it had Formerly won but is now issue to an attraction by Toshiba.
Consider it in this way, a successful $400 million settlement in favor of Lexar would equate to around $four.eighty three per share in supplemental money to incorporate to the current $0.54 in free of charge dollars soon after financial debt 정보이용료 that Lexar has. This suggests Micron would fork out less than $5 a share for Lexars belongings, that's reduced.
There's also speculation that SanDisk is seriously thinking about taking a run https://www.washingtonpost.com/newssearch/?query=소액결제 at getting Lexar. This might sound right considering the fact that SanDisk would solidify its Management posture.
In addition, SanDisk has a close Functioning marriage with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Stay tune. A Exclusive shareholder Assembly to evaluation the takeover bid has actually been moved to June sixteen. In my watch, the $ten bid undervalues Lexar. Dilemma is will a white knight surface area?