On Friday, flash media maker Lexar Media (LEXR) received an increased revised takeover bid from Micron Technology (MU). The revised bid areas the all-stock exchange provide at all-around $10 a share, up marginally within the initial bid.
But significant shareholders which include billionaire Trader Carl Icahn coupled with hedge funds and portfolio professionals have deemed the First bid to generally be inappropriate. Elliott Associates believes the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is really worth among $one.5 billion and $2.4 billion. The estimate is well above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too low and should be turned down by shareholders. Micron hopes to pay back about 1.10x product sales for Lexar although the industry leader SanDisk (SNDK) is trading at four.35x product sales. Lexar also incorporates a $400 million patent infringement lawsuit versus Toshiba that it experienced Formerly won but is currently matter to an enchantment by Toshiba.
Give it some thought in this manner, A prosperous $400 million settlement in favor of Lexar would equate to all-around $4.eighty three for every share in more dollars to incorporate to The present $0.54 in totally free cash right after personal debt that Lexar has. What this means is Micron would shell out a lot less than $5 a share for Lexars belongings, that is lower.
There is certainly also speculation that SanDisk is severely serious about using a operate at attaining Lexar. This could make sense considering that SanDisk would solidify its Management place.
Furthermore, SanDisk has a detailed working partnership with Toshiba, which could see SanDisk https://en.search.wordpress.com/?src=organic&q=소액결제 drop or lessen the settlement if it managed to obtain Lexar.
Continue to be tune. 소액결제 A Unique shareholder Assembly to critique the takeover bid has been moved to June sixteen. In my watch, the $10 bid undervalues Lexar. Concern is will a white knight floor?