On Friday, flash media maker Lexar Media (LEXR) obtained a greater revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-inventory exchange supply at around $ten a share, up marginally from your Original bid.
But big shareholders which include billionaire Trader Carl Icahn together with hedge money and portfolio managers https://www.washingtonpost.com/newssearch/?query=소액결제 have considered the Original bid 소액결제현금화 to get inappropriate. Elliott Associates believes the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is really worth concerning $one.5 billion and $2.four billion. The estimate is nicely above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well reduced and ought to be rejected by shareholders. Micron desires to pay all over 1.10x income for Lexar when the market leader SanDisk (SNDK) is trading at 4.35x income. Lexar also incorporates a $four hundred million patent infringement lawsuit towards Toshiba that it had Formerly gained but is now topic to an attractiveness by Toshiba.
Think about it in this way, An effective $four hundred million settlement in favor of Lexar would equate to about $4.83 for each share in further cash to include to The present $0.54 in absolutely free cash just after debt that Lexar has. What this means is Micron would pay under $5 a share for Lexars assets, which happens to be lower.
There's also speculation that SanDisk is severely considering taking a operate at attaining Lexar. This may make sense since SanDisk would solidify its Management place.
Also, SanDisk has a detailed Doing the job partnership with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to amass Lexar.
Keep tune. A Unique shareholder Conference to evaluation the takeover bid has become moved to June 16. In my see, the $10 bid undervalues Lexar. Query is will a white knight area?