On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Technologies (MU). The revised bid locations the all-inventory exchange offer at all over $ten a share, up marginally from your Preliminary bid.
But big shareholders including billionaire Trader Carl Icahn along with hedge resources and portfolio supervisors have considered the Original bid to become inappropriate. Elliott Associates believes the First bid “substantially undervalues Lexar,” and feels Lexar is well worth among $1.five billion and $2.4 billion. The estimate is well higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way way too minimal and needs to be turned down by shareholders. Micron wants to pay out close to one.10x gross sales for Lexar whilst the marketplace chief SanDisk (SNDK) https://en.wikipedia.org/wiki/?search=소액결제 is buying and selling at 4.35x income. Lexar also contains a $four hundred million patent infringement lawsuit versus Toshiba that it had Formerly won but is now topic to an attractiveness by Toshiba.
Consider it this fashion, A prosperous $four hundred million 소액결제정책 settlement in favor of Lexar would equate to close to $four.eighty three for each share in added cash to add to The existing $0.fifty four in free of charge dollars after financial debt that Lexar has. This implies Micron would spend fewer than $5 a share for Lexars property, which happens to be reduced.
There may be also speculation that SanDisk is severely thinking of using a operate at buying Lexar. This would make sense since SanDisk would solidify its leadership position.
Furthermore, SanDisk has an in depth Performing relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to obtain Lexar.
Remain tune. A Particular shareholder meeting to critique the takeover bid has been moved to June 16. In my view, the $10 bid undervalues Lexar. Dilemma is will a white knight area?