On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technological know-how (MU). The revised bid places the all-stock exchange offer at all over $ten a share, up marginally in the First bid.
But major shareholders which includes billionaire investor Carl Icahn coupled with hedge money and portfolio professionals have deemed the initial bid to be inappropriate. Elliott Associates thinks the First bid “appreciably undervalues Lexar,” and feels Lexar is really worth among $1.five billion and $2.4 billion. The estimate is very well previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way also low and really should be rejected by shareholders. Micron would like to spend close to one.10x income for Lexar when the market leader SanDisk (SNDK) is trading at 4.35x revenue. Lexar also contains a $400 million patent infringement lawsuit in opposition to Toshiba that it had Earlier received but is now subject matter to an appeal by Toshiba.
Consider it using this method, An effective $400 million settlement in favor of Lexar would equate to close to $four.83 for every share in http://www.bbc.co.uk/search?q=소액결제 more funds to include to 신용카드현금화 the current $0.54 in free of charge income following personal debt that Lexar has. What this means is Micron would shell out fewer than $5 a share for Lexars property, that is low.
There may be also speculation that SanDisk is very seriously thinking about having a operate at buying Lexar. This could sound right given that SanDisk would solidify its Management situation.
Furthermore, SanDisk has an in depth working relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Remain tune. A Particular shareholder Conference to evaluate the takeover bid has become moved to June sixteen. In my view, the $ten bid undervalues Lexar. Dilemma is will a white knight area?