On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technologies (MU). The revised bid locations the all-inventory Trade offer you at close to $10 a share, up marginally with the Original bid.
But big shareholders together with billionaire Trader Carl Icahn in addition to hedge cash and portfolio managers have considered the Preliminary bid being inappropriate. Elliott Associates thinks the Original bid “drastically undervalues Lexar,” and feels Lexar is well worth between $one.five billion and $two.4 billion. The estimate is nicely above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too low and really should be rejected by shareholders. Micron really wants to shell out all-around one.10x product sales for Lexar though the market leader SanDisk (SNDK) is trading at 4.35x sales. Lexar also includes a $four hundred million patent infringement lawsuit from Toshiba that it had Earlier gained but is now topic to an attractiveness by Toshiba.
Think it over in this manner, a successful $400 million settlement in favor of Lexar would equate to all-around $4.83 per share in added income to add to The existing $0.54 in totally free money right after credit card debt that Lexar has. This suggests Micron would spend fewer than $five a share for Lexars assets, which can be lower.
There exists also speculation that SanDisk is significantly serious about taking a operate at getting Lexar. This is able to sound right http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 due to the fact SanDisk would solidify its leadership place.
Also, SanDisk has an in depth Performing romantic relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to acquire Lexar.
Continue to be tune. A Exclusive shareholder meeting to evaluation the takeover bid is moved to June 16. In my look at, the $ten bid undervalues Lexar. 소액결제 Dilemma is will a white knight floor?