On Friday, flash media maker Lexar Media (LEXR) obtained a higher revised takeover bid from Micron Engineering (MU). The revised bid places the all-stock exchange offer at about $10 a share, up marginally with the Preliminary bid.
But key shareholders together with billionaire investor Carl Icahn as well as hedge money and portfolio supervisors have considered the initial bid to be inappropriate. Elliott Associates thinks the Original bid “substantially undervalues Lexar,” and feels Lexar is truly worth amongst $1.five billion and $two.4 billion. The estimate is perfectly higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way way too lower and ought to be turned down by shareholders. Micron hopes to shell http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 out all-around 1.10x gross sales for Lexar when the marketplace chief SanDisk (SNDK) is investing at four.35x revenue. Lexar also features a $four hundred million patent infringement lawsuit against Toshiba that it had Formerly received but has become subject matter to an attraction by Toshiba.
Consider it using this method, An effective $400 million settlement in favor of Lexar would equate to all around $4.83 for each share in supplemental money so as to add to The present $0.54 in cost-free funds after personal debt that Lexar has. This means Micron would spend fewer than $5 a share for Lexars belongings, which happens to be very low.
There is also speculation that SanDisk is severely considering taking a operate at buying Lexar. This could seem sensible due to the fact 정보이용료 SanDisk would solidify its leadership placement.
In addition, SanDisk has a close Doing the job connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Continue to be tune. A Exclusive shareholder Conference to evaluate the takeover bid has long been moved to June 16. In my check out, the $10 bid undervalues Lexar. Issue is will a white knight floor?