On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Technologies (MU). The revised bid destinations the all-stock exchange provide at all around $10 a share, up marginally from the initial bid.
But main shareholders which include billionaire investor Carl Icahn together with hedge funds and portfolio managers have deemed the Preliminary bid to be inappropriate. Elliott Associates thinks the initial bid “significantly undervalues Lexar,” and feels Lexar is worth involving $one.5 billion and $two.four billion. The estimate is well over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well small and should be turned down by shareholders. Micron wishes to pay back close to one.10x sales for Lexar whilst the industry leader SanDisk (SNDK) is investing at 4.35x revenue. Lexar also includes a $400 million patent infringement lawsuit from Toshiba that it experienced Formerly received but is currently matter to an enchantment by Toshiba.
Think it over this way, a successful $400 million settlement in favor of Lexar would equate to around $four.eighty three per share in supplemental hard cash to add to The existing $0.fifty four in free of charge dollars following personal debt that Lexar has. This suggests Micron would pay back 신용카드현금화 below $5 a share for Lexars belongings, that is reduced.
There exists also speculation that SanDisk is very seriously considering using a run at buying Lexar. This would sound right given that SanDisk would solidify its Management position.
Furthermore, SanDisk has a detailed working romantic relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to amass Lexar.
Keep tune. A Distinctive shareholder meeting to evaluation the takeover bid http://edition.cnn.com/search/?text=소액결제 has become moved to June sixteen. In my perspective, the $ten bid undervalues Lexar. Concern is will a white knight surface?