On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Know-how (MU). The revised bid sites the all-stock exchange offer you at close to $10 a share, up marginally from your First bid.
But key shareholders like billionaire investor Carl Icahn in addition to hedge resources and portfolio supervisors have deemed the Original bid to be inappropriate. Elliott Associates believes the initial bid “appreciably undervalues Lexar,” and feels Lexar is truly worth between $1.five billion and $2.four billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well very low and must be rejected by shareholders. Micron wants to shell out about one.10x product sales for Lexar though the industry leader SanDisk (SNDK) is trading at 4.35x sales. Lexar also provides get more info a $400 million patent infringement lawsuit towards Toshiba that it had Formerly won but has become matter to an charm by Toshiba.
Think it over in this manner, A prosperous $four hundred million settlement in favor of Lexar would equate to all over $4.eighty three for every share in supplemental dollars to incorporate to The existing $0.fifty four in free of charge dollars after personal debt that Lexar has. This implies Micron would fork out under $5 a share for Lexars property, which happens to be low.
There's also speculation that SanDisk is severely considering using a run at obtaining Lexar. This may sound right because SanDisk would solidify its Management position.
Furthermore, SanDisk has a detailed Functioning marriage with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.
Stay tune. A Particular shareholder Conference to evaluation the takeover bid has long been moved to June sixteen. In my look at, the https://www.washingtonpost.com/newssearch/?query=소액결제 $10 bid undervalues Lexar. Issue is will a white knight area?