On Friday, flash media maker Lexar Media (LEXR) acquired a better revised takeover bid from Micron Know-how (MU). The revised bid spots the all-stock exchange give at close to $10 a share, up marginally from your First bid.
But key shareholders which includes billionaire Trader Carl Icahn as well as hedge funds and 소액결제 portfolio managers have deemed the First bid to become inappropriate. Elliott Associates believes the initial bid “appreciably undervalues Lexar,” and feels Lexar is value among $1.five billion and $two.four billion. The estimate is well earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also reduced and should be turned down by shareholders. Micron wishes to fork out all over 1.10x income for https://www.washingtonpost.com/newssearch/?query=소액결제 Lexar although the industry leader SanDisk (SNDK) is trading at 4.35x gross sales. Lexar also features a $four hundred million patent infringement lawsuit towards Toshiba that it had Formerly gained but is now issue to an attraction by Toshiba.
Consider it this way, a successful $400 million settlement in favor of Lexar would equate to all around $4.eighty three per share in more hard cash to add to the current $0.fifty four in cost-free funds following credit card debt that Lexar has. This implies Micron would shell out fewer than $5 a share for Lexars property, which can be small.
There's also speculation that SanDisk is significantly thinking about using a operate at acquiring Lexar. This would make sense given that SanDisk would solidify its leadership place.
Furthermore, SanDisk has an in depth Doing work romantic relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to obtain Lexar.
Remain tune. A Unique shareholder meeting to critique the takeover bid continues to be moved to June 16. In my watch, the $10 bid undervalues Lexar. Dilemma is will a white knight surface?