On Friday, flash media maker Lexar Media (LEXR) received a greater revised takeover bid from Micron Technological know-how (MU). The revised bid sites the all-stock exchange offer at all over $10 a share, up marginally from the Original bid.
But main shareholders http://xn--7y2br0oc8jnkbb1f.kr/ such as billionaire Trader Carl Icahn as well as hedge resources and portfolio http://www.thefreedictionary.com/소액결제 professionals have considered the First bid being inappropriate. Elliott Associates believes the First bid “significantly undervalues Lexar,” and feels Lexar is worth among $1.five billion and $two.4 billion. The estimate is properly earlier mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also lower and ought to be turned down by shareholders. Micron wants to shell out all-around 1.10x gross sales for Lexar even though the industry leader SanDisk (SNDK) is investing at four.35x sales. Lexar also features a $400 million patent infringement lawsuit versus Toshiba that it had Formerly won but has become subject to an charm by Toshiba.
Think about it in this manner, An effective $400 million settlement in favor of Lexar would equate to close to $4.eighty three for each share in extra dollars so as to add to The present $0.54 in no cost hard cash soon after credit card debt that Lexar has. What this means is Micron would fork out below $five a share for Lexars assets, which is lower.
There is also speculation that SanDisk is severely contemplating taking a operate at obtaining Lexar. This is able to sound right given that SanDisk would solidify its leadership situation.
Furthermore, SanDisk has a close Performing romance with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to accumulate Lexar.
Keep tune. A Unique shareholder Conference to assessment the takeover bid has been moved to June 16. In my view, the $10 bid undervalues Lexar. Problem is will a white knight floor?