On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-inventory Trade present at about $ten a share, up marginally through the initial bid.
But main shareholders which include billionaire Trader Carl Icahn along with hedge cash and portfolio supervisors have considered the Preliminary bid to generally be inappropriate. Elliott Associates thinks the First bid “considerably undervalues Lexar,” and feels Lexar is worth involving $1.5 billion and $2.4 billion. The estimate is well over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too very low and ought to be turned down by shareholders. Micron really wants to fork out all over one.10x product sales for Lexar while the market leader SanDisk (SNDK) is investing at 4.35x revenue. Lexar also includes a $400 million patent infringement lawsuit in opposition to Toshiba that it experienced Formerly received but is currently matter to an appeal by Toshiba.
Give it some thought using this method, An effective $400 million settlement in favor of Lexar would equate to all over $4.83 for every share in extra cash to include to the current $0.54 in free http://www.thefreedictionary.com/소액결제 of charge money just after debt that Lexar has. This suggests Micron would shell out below $five a share for Lexars assets, which is reduced.
There's also speculation that SanDisk is severely considering getting a run at attaining Lexar. This would sound right because 신용카드현금화 SanDisk would solidify its Management place.
What's more, SanDisk has an in depth Functioning marriage with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Continue to be tune. A Distinctive shareholder Conference to review the takeover bid continues to be moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Query is will a white knight surface?