On Friday, flash media maker Lexar Media (LEXR) gained the next revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-stock Trade offer you at about $10 a share, up marginally with the initial bid.
But key shareholders which include billionaire investor Carl Icahn coupled with hedge money and portfolio administrators have considered the initial bid for being inappropriate. Elliott Associates believes the Original bid “substantially undervalues Lexar,” and feels Lexar is value amongst $1.five billion and $two.four billion. The estimate is effectively over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too low and has to be rejected by shareholders. Micron wants to fork out around one.10x income for Lexar though the market leader SanDisk (SNDK) is trading at four.35x product sales. Lexar also contains a $400 million patent infringement lawsuit in opposition to Toshiba that it had previously won but is now topic to an enchantment by Toshiba.
Give it some thought in this way, a successful $four hundred million settlement in favor of Lexar would equate to all over $4.83 for every share in further money to add to The existing $0.fifty four in absolutely free income after personal debt that Lexar has. What this means is Micron would fork out under $five a share for Lexars property, that is very low.
There is also speculation that SanDisk is severely contemplating using a run at obtaining Lexar. This may sound right due to the fact SanDisk would solidify its Management situation.
Also, SanDisk has an in depth working romance with Toshiba, which could see SanDisk fall or decrease 소액결제정책 the settlement if it managed to amass Lexar.
Keep tune. A special shareholder Conference https://en.search.wordpress.com/?src=organic&q=소액결제 to overview the takeover bid is moved to June 16. In my view, the $10 bid undervalues Lexar. Question is will a white knight floor?