On Friday, flash media maker Lexar Media (LEXR) received a greater revised takeover bid from Micron Technology (MU). The revised bid sites the all-inventory exchange provide at all-around $ten a share, up marginally with the initial bid.
But significant shareholders which include billionaire investor Carl Icahn in conjunction with hedge cash and portfolio managers have considered the initial bid to become inappropriate. Elliott Associates believes the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is well worth concerning $one.5 billion and $2.4 billion. The estimate is perfectly earlier mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well low and has to be rejected by shareholders. Micron would like to fork out close to 1.10x product sales for Lexar even though the industry leader SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also features a $four hundred million patent 정보이용료 infringement lawsuit towards Toshiba that it had Earlier gained but is currently subject matter to an attractiveness by Toshiba.
Give it some thought in this manner, a successful $400 million settlement in favor of Lexar would equate to around $four.eighty three for every share in additional money so as to add to The present $0.fifty four in totally free hard cash soon after financial debt that Lexar has. This suggests Micron would pay back fewer than $5 a share for Lexars belongings, and that is minimal.
There is certainly also speculation that SanDisk is seriously contemplating taking a operate at acquiring Lexar. This could sound right given that http://edition.cnn.com/search/?text=소액결제 SanDisk would solidify its Management place.
What's more, SanDisk has a detailed Functioning partnership with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Stay tune. A Particular shareholder Assembly to critique the takeover bid continues to be moved to June sixteen. In my see, the $ten bid undervalues Lexar. Query is will a white knight area?