On Friday, flash media maker Lexar Media (LEXR) been given a better revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-stock Trade offer at all around $10 a share, up marginally within the First bid.
But main shareholders such as billionaire investor Carl Icahn in conjunction with hedge money and portfolio managers have considered the initial bid to get inappropriate. Elliott Associates thinks the initial bid “considerably undervalues Lexar,” and feels Lexar is worthy of involving $one.five billion and $2.four billion. The estimate is effectively higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way also small and has to be rejected by shareholders. Micron desires to pay back all-around one.10x gross sales for Lexar even though the industry leader SanDisk (SNDK) is investing at 소액결제정책 4.35x sales. Lexar also features a $400 million patent infringement lawsuit from Toshiba that it had previously won but is currently subject matter to an enchantment by Toshiba.
Think about it by doing this, a successful $four hundred million settlement in favor of Lexar would equate to all-around $four.eighty three for every share in additional hard cash to add to the current $0.fifty four in absolutely free money following credit card debt that Lexar has. This implies Micron would fork out less than $5 a share for Lexars belongings, and that is lower.
There is certainly also speculation that SanDisk is significantly thinking about having a run at buying Lexar. This might make sense because SanDisk would solidify its Management posture.
What's more, SanDisk has a detailed working romance with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to obtain Lexar.
Remain tune. A Distinctive shareholder http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 meeting to evaluate the takeover bid continues to be moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Concern is will a white knight area?