On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid destinations the all-inventory Trade give at all around $10 a share, up marginally in the Original bid.
But big shareholders together with billionaire Trader Carl Icahn together with hedge funds and portfolio supervisors have deemed the Preliminary bid to become inappropriate. Elliott Associates believes the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is well worth amongst $one.five billion and $2.four billion. The estimate is very well previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too minimal and https://www.washingtonpost.com/newssearch/?query=소액결제 has to be turned read more down by shareholders. Micron hopes to spend all around 1.10x sales for Lexar even though the industry chief SanDisk (SNDK) is buying and selling at four.35x sales. Lexar also includes a $400 million patent infringement lawsuit in opposition to Toshiba that it experienced Earlier received but has become subject to an appeal by Toshiba.
Give it some thought by doing this, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.eighty three for each share in added income so as to add to The present $0.54 in free of charge cash following personal debt that Lexar has. This implies Micron would spend a lot less than $5 a share for Lexars belongings, which is low.
There may be also speculation that SanDisk is significantly thinking about using a run at buying Lexar. This might make sense given that SanDisk would solidify its leadership place.
Also, SanDisk has a close Doing the job relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to amass Lexar.
Remain tune. A Distinctive shareholder Conference to critique the takeover bid continues to be moved to June 16. In my check out, the $10 bid undervalues Lexar. Dilemma is will a white knight floor?