On Friday, flash media maker Lexar Media (LEXR) gained the next revised takeover bid from Micron Technological know-how (MU). The revised bid sites the all-inventory exchange offer at all-around $10 a share, up marginally from your First bid.
But important shareholders together with billionaire investor Carl Icahn in conjunction with hedge money and portfolio professionals have deemed the initial bid to become inappropriate. Elliott Associates believes the First bid “significantly undervalues Lexar,” and feels Lexar is truly worth in between $one.5 billion and $two.four billion. The estimate is nicely previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also minimal and must be rejected by shareholders. Micron would like to fork out all-around one.10x revenue for Lexar whilst http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 the industry leader SanDisk (SNDK) is investing at four.35x product sales. Lexar also provides a $four hundred million patent infringement lawsuit from Toshiba that it experienced previously gained but is currently issue to an appeal by Toshiba.
Think it over this fashion, An effective $four hundred million settlement in favor of Lexar would equate to about $4.83 per share in more funds to incorporate to The present $0.54 in free of charge funds immediately after financial debt that Lexar has. This implies Micron would pay less than $five a share for Lexars belongings, which is lower. 소액결제현금화
There is certainly also speculation that SanDisk is significantly thinking about having a run at getting Lexar. This may seem sensible given that SanDisk would solidify its leadership placement.
Also, SanDisk has a close working connection with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to obtain Lexar.
Remain tune. A Particular shareholder meeting to critique the takeover bid has actually been moved to June 16. In my view, the $10 bid undervalues Lexar. Concern is will a white knight surface?