On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover bid from Micron Know-how (MU). The revised bid locations the all-stock Trade give at around $10 a share, up marginally within the Preliminary bid.
But key shareholders like billionaire investor Carl Icahn as well as hedge cash and portfolio supervisors have deemed the First bid being inappropriate. Elliott Associates thinks the First https://www.washingtonpost.com/newssearch/?query=소액결제 bid “appreciably undervalues Lexar,” and feels Lexar is well worth concerning $1.5 billion and $two.4 billion. The estimate is properly higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well reduced and ought to be rejected by shareholders. Micron really wants to pay out about one.10x income for Lexar while the marketplace chief SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also includes a $400 million patent infringement lawsuit towards Toshiba that 소액결제정책 it experienced Formerly gained but has become issue to an enchantment by Toshiba.
Consider it by doing this, a successful $400 million settlement in favor of Lexar would equate to about $4.83 for each share in additional cash to incorporate to the current $0.fifty four in totally free cash after personal debt that Lexar has. This suggests Micron would spend under $5 a share for Lexars assets, which happens to be low.
You can find also speculation that SanDisk is very seriously contemplating having a operate at getting Lexar. This is able to make sense given that SanDisk would solidify its Management situation.
In addition, SanDisk has a close Doing the job connection with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar.
Remain tune. A Unique shareholder Assembly to evaluate the takeover bid has long been moved to June sixteen. In my see, the $ten bid undervalues Lexar. Concern is will a white knight floor?