On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technologies (MU). The revised bid areas the all-inventory Trade offer you at about $ten a share, up marginally in the Preliminary bid.
But important shareholders such as billionaire investor Carl Icahn in conjunction with hedge cash and portfolio supervisors have considered the Preliminary bid for being inappropriate. Elliott Associates thinks the First bid “noticeably undervalues Lexar,” and 소액결제정책 feels Lexar is value amongst $1.5 billion and $2.4 billion. The estimate is nicely above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also reduced and needs to be turned down by shareholders. Micron would like to pay close to 1.10x income for Lexar when the marketplace leader http://www.bbc.co.uk/search?q=소액결제 SanDisk (SNDK) is trading at four.35x sales. Lexar also features a $400 million patent infringement lawsuit in opposition to Toshiba that it had Formerly won but is currently matter to an appeal by Toshiba.
Consider it using this method, A prosperous $400 million settlement in favor of Lexar would equate to all around $4.eighty three for each share in additional cash to include to the current $0.54 in no cost dollars immediately after credit card debt that Lexar has. This means Micron would pay back a lot less than $five a share for Lexars belongings, which can be small.
There's also speculation that SanDisk is seriously considering having a run at attaining Lexar. This would seem sensible due to the fact SanDisk would solidify its leadership position.
Moreover, SanDisk has a close Doing the job romance with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Stay tune. A special shareholder meeting to evaluate the takeover bid continues to be moved to June 16. In my watch, the $ten bid undervalues Lexar. Problem is will a white knight area?