On Friday, flash media maker Lexar Media (LEXR) obtained a greater revised takeover bid from Micron Engineering (MU). The revised bid locations the all-stock Trade supply at all around $ten a share, up marginally from your First bid.
But significant shareholders together with billionaire investor Carl Icahn coupled with hedge money and portfolio professionals have considered the initial bid to become inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is worthy of amongst $one.five billion and $two.four billion. The estimate is very well above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also low and has to be turned down by shareholders. Micron wants 소액결제현금화 to pay around 1.10x gross sales for Lexar whilst the industry chief SanDisk (SNDK) is investing at four.35x sales. Lexar also provides a $400 million patent infringement lawsuit from Toshiba that it had Beforehand won but is currently issue to an attractiveness by Toshiba.
Think about it using this method, An effective $400 million settlement in favor of Lexar would equate http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 to all-around $four.83 per share in extra funds so as to add to The existing $0.fifty four in totally free income right after personal debt that Lexar has. This suggests Micron would spend under $five a share for Lexars property, which is small.
There exists also speculation that SanDisk is critically thinking about having a run at obtaining Lexar. This is able to make sense since SanDisk would solidify its Management situation.
In addition, SanDisk has an in depth Doing work partnership with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to amass Lexar.
Remain tune. A special shareholder Conference to evaluation the takeover bid has long been moved to June 16. In my check out, the $10 bid undervalues Lexar. Dilemma is will a white knight surface?