On Friday, flash media maker Lexar Media (LEXR) obtained a greater revised takeover bid from Micron Technological know-how (MU). The revised bid spots the all-inventory exchange give at all over $10 a share, up marginally through the First bid.
But significant shareholders like billionaire Trader Carl Icahn along with hedge funds and portfolio professionals have considered the initial bid to get inappropriate. Elliott Associates thinks the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is value in between $1.five billion and $two.4 billion. The estimate is very well over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also very low and really should be turned down by shareholders. Micron desires to spend all over 1.10x profits for Lexar when the marketplace leader SanDisk (SNDK) is investing at 4.35x revenue. Lexar also provides a $400 million patent infringement lawsuit against Toshiba that it had previously gained but is now topic to an enchantment by Toshiba.
Give it some thought by doing this, a successful $four hundred million settlement in favor of Lexar would equate to all around $4.83 for every share in additional income so as to add to The existing $0.fifty four in totally free dollars just after debt that Lexar has. What this means is Micron would pay back fewer than $five a share for Lexars property, that's small.
You can find also speculation that SanDisk is very seriously thinking of using a run at obtaining Lexar. This is able to make sense considering that SanDisk would solidify its leadership placement. http://www.thefreedictionary.com/소액결제
What's more, SanDisk has a close working marriage with Toshiba, which could see SanDisk 정보이용료 fall or decrease the settlement if it managed to obtain Lexar.
Stay tune. A Particular shareholder Assembly to overview the takeover bid has been moved to June 16. In my see, the $10 bid undervalues Lexar. Dilemma is will a white knight area?