On Friday, flash media maker Lexar Media (LEXR) received a better revised takeover bid from Micron Technology (MU). The revised bid areas the all-inventory Trade present at close to $10 a share, up marginally through the initial bid.
But main shareholders like billionaire Trader Carl Icahn in conjunction with hedge resources and portfolio supervisors have considered the Preliminary bid to generally be inappropriate. Elliott Associates believes the initial bid “considerably undervalues Lexar,” and feels Lexar is well worth between $1.five billion and $2.four billion. The estimate is well previously 소액결제현금화 mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also very low and ought to be rejected by shareholders. Micron hopes to pay out about one.10x income for Lexar although the market leader SanDisk (SNDK) is buying and selling at four.35x sales. Lexar also includes a $four hundred million patent infringement lawsuit from Toshiba that it had Formerly gained but is now matter to an appeal by Toshiba.
Give it some thought in this manner, a successful $four hundred million settlement in favor of Lexar would equate to all over $4.eighty three per share in supplemental cash to add to The existing $0.54 in totally free cash after personal debt that Lexar has. This suggests Micron would spend fewer than $5 a share for Lexars belongings, which happens to be minimal.
You can find also speculation that SanDisk is significantly pondering taking a run at obtaining Lexar. This may sound right since SanDisk would solidify its Management position.
Furthermore, SanDisk has a close Functioning romance with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to obtain Lexar.
Remain tune. A Specific shareholder Conference to evaluation the takeover bid is moved to June 16. In my watch, http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 the $ten bid undervalues Lexar. Concern is will a white knight floor?