On Friday, flash media maker Lexar Media (LEXR) obtained a higher revised takeover bid from Micron Technology (MU). The revised bid sites the all-stock exchange present at all-around $10 a share, up marginally within the First bid.
But key shareholders including billionaire Trader Carl Icahn coupled with hedge funds and portfolio managers have considered the First bid being inappropriate. Elliott Associates believes the initial bid “substantially undervalues Lexar,” and feels Lexar is worth amongst $1.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 far too lower and really should be rejected by shareholders. Micron desires to pay all around 1.10x product sales for Lexar though the industry leader SanDisk (SNDK) is buying and selling at 4.35x profits. Lexar also has a $400 million patent infringement lawsuit towards Toshiba that it had Formerly won but is now subject matter to an attraction by Toshiba.
Think it over this way, a successful $400 million settlement in favor of Lexar would equate to close to $4.eighty three per share in further dollars so as to add to The present $0.fifty four in absolutely free hard cash just after debt that Lexar has. This implies Micron would pay out lower than http://xn--7y2br0oc8jnkbb1f.kr/ $5 a share for Lexars belongings, which can be low.
There is certainly also speculation that SanDisk is severely considering getting a operate at acquiring Lexar. This may sound right due to the fact SanDisk would solidify its Management placement.
Moreover, SanDisk has a detailed Doing work romance with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to amass Lexar.
Continue to be tune. A Distinctive shareholder Assembly to evaluation the takeover bid continues to be moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Question is http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 will a white knight area?