On Friday, flash media maker Lexar Media (LEXR) gained the next revised takeover bid from Micron Technology (MU). The revised bid areas the all-inventory exchange present at about $10 a share, up marginally within the First bid.
But big shareholders including billionaire investor Carl Icahn in conjunction with hedge resources and portfolio professionals have considered the initial bid being inappropriate. Elliott Associates believes the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is truly worth concerning $one.five billion and $two.4 billion. The estimate is well previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too very low and needs to be turned down by shareholders. Micron would like to pay back all around 1.10x sales for Lexar whilst the marketplace chief SanDisk (SNDK) is trading at 4.35x revenue. Lexar 정보이용료 also contains a $400 million patent infringement lawsuit towards Toshiba that it experienced Formerly won but is currently subject matter to an attraction by Toshiba.
Think it over by doing this, An effective $four hundred million settlement in favor of Lexar would equate to about $4.eighty three per share in further dollars to add to the current $0.54 in no cost http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 cash right after financial debt that Lexar has. This means Micron would fork out less than $five a share for Lexars property, that's small.
There is certainly also speculation that SanDisk is very seriously pondering having a run at acquiring Lexar. This might make sense since SanDisk would solidify its Management posture.
Additionally, SanDisk has an in depth Performing romance with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Stay tune. A Specific shareholder Conference to review the takeover bid has actually been moved to June 16. In my see, the $10 bid undervalues Lexar. Question is will a white knight surface?