On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Engineering (MU). The revised bid areas the all-inventory exchange provide at all-around $10 a share, up marginally from the Preliminary bid.
But significant shareholders which includes billionaire Trader Carl Icahn coupled with hedge resources and portfolio professionals have considered the Preliminary bid to get inappropriate. Elliott Associates thinks the Original bid “considerably undervalues Lexar,” and feels Lexar is worth between $one.5 소액결제현금화 billion and $two.four billion. The estimate is perfectly previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too small and has to be rejected by shareholders. Micron wishes to pay out around one.10x product sales for Lexar while the market leader SanDisk (SNDK) is investing at 4.35x product sales. Lexar also provides a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Earlier won but is now matter to an enchantment by Toshiba.
Give it some thought by doing this, An effective $four hundred million settlement in favor of Lexar would equate to about $four.eighty three http://www.bbc.co.uk/search?q=소액결제 for each share in added hard cash to include to The present $0.fifty four in free of charge income after financial debt that Lexar has. This implies Micron would pay below $five a share for Lexars belongings, that is lower.
There's also speculation that SanDisk is significantly serious about using a operate at attaining Lexar. This might sound right because SanDisk would solidify its Management position.
Moreover, SanDisk has a close working romance with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to amass Lexar.
Continue to be tune. A Distinctive shareholder Conference to evaluate the takeover bid has been moved to June 16. In my view, the $10 bid undervalues Lexar. Query is will a white knight floor?