On Friday, flash media http://edition.cnn.com/search/?text=소액결제 maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technology (MU). The revised http://xn--7y2br0oc8jnkbb1f.kr/ bid locations the all-stock Trade offer at close to $10 a share, up marginally within the Preliminary bid.
But major shareholders which includes billionaire Trader Carl Icahn together with hedge money and portfolio supervisors have considered the Preliminary bid to become inappropriate. Elliott Associates believes the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is worth between $1.five billion and $two.4 billion. The estimate is well higher than 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 turned down by shareholders. Micron desires to fork out about one.10x sales for Lexar while the industry chief SanDisk (SNDK) is trading at 4.35x profits. Lexar also contains a $400 million patent infringement lawsuit in opposition to Toshiba that it had Beforehand won but is now subject matter to an attraction by Toshiba.
Consider it this fashion, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.83 per share in additional dollars to include to The present $0.54 in cost-free cash just after financial debt that Lexar has. This implies Micron would spend less than $five a share for Lexars assets, which is small.
There exists also speculation that SanDisk is very seriously thinking of having a run at attaining Lexar. This may make sense given that SanDisk would solidify its leadership position.
In addition, SanDisk has a detailed Doing work marriage with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to obtain Lexar.
Continue to be tune. A Particular shareholder Assembly to assessment the takeover bid has become moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Problem is will a white knight floor?