On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological know-how (MU). The revised bid areas the all-stock Trade supply at https://www.washingtonpost.com/newssearch/?query=소액결제 all-around $ten a share, 소액결제정책 up marginally within the initial bid.
But significant shareholders which include billionaire investor Carl Icahn as well as hedge funds and portfolio supervisors have deemed the Preliminary bid to get inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is truly worth in between $one.5 billion and $two.four billion. The estimate is perfectly above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well very low and must be rejected by shareholders. Micron would like to pay back all around 1.10x income for Lexar although the market leader SanDisk (SNDK) is trading at four.35x profits. Lexar also incorporates a $four hundred million patent infringement lawsuit versus Toshiba that it experienced previously won but is currently subject to an charm by Toshiba.
Consider it this way, a successful $400 million settlement in favor of Lexar would equate to about $four.83 for every share in more dollars so as to add to the current $0.fifty four in cost-free income immediately after personal debt that Lexar has. This means Micron would pay lower than $5 a share for Lexars belongings, and that is very low.
There is also speculation that SanDisk is very seriously considering getting a run at acquiring Lexar. This would seem sensible considering that SanDisk would solidify its Management place.
Also, SanDisk has a detailed working relationship with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to accumulate Lexar.
Keep tune. A Unique shareholder Assembly to overview the takeover bid has actually been moved to June 16. In my check out, the $10 bid undervalues Lexar. Query is will a white knight surface?