On Friday, flash media maker Lexar Media (LEXR) received a better revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-inventory exchange provide at all around $ten a share, up marginally in the initial bid.
But key shareholders like billionaire investor Carl Icahn in addition to hedge money and portfolio administrators have deemed the Original bid for being inappropriate. Elliott Associates believes the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is well worth concerning $one.5 billion and $2.four billion. The estimate is well higher than the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too lower and ought to be turned down by shareholders. Micron desires to spend close to 1.10x product sales for Lexar although the industry chief SanDisk (SNDK) is trading at 4.35x income. Lexar also 소액결제현금화 incorporates a $400 million patent infringement lawsuit against Toshiba that it had Formerly received but is now issue to an enchantment by Toshiba.
Give it some thought in this way, A prosperous $four hundred million settlement in favor of Lexar would equate to around $4.83 for every share in extra dollars so as to add to the current $0.54 in cost-free cash soon after credit card debt that Lexar has. This suggests Micron would pay back a lot less than $five a share for Lexars assets, http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 which is lower.
You can find also speculation that SanDisk is severely serious about using a operate at buying Lexar. This might sound right due to the fact SanDisk would solidify its Management placement.
Also, SanDisk has a close Functioning marriage with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar.
Keep tune. A Specific shareholder Assembly to assessment the takeover bid continues to be moved to June sixteen. In my view, the $ten bid undervalues Lexar. Concern is will a white knight surface?