On Friday, flash media maker Lexar Media (LEXR) obtained an increased revised takeover bid from Micron Engineering (MU). The revised bid locations the all-inventory Trade offer at around $10 a share, up marginally in the First bid.
But major shareholders such as billionaire Trader Carl Icahn coupled with hedge funds and portfolio supervisors have considered the Preliminary bid to be inappropriate. Elliott Associates believes the initial bid “noticeably undervalues Lexar,” and feels Lexar is really worth between $one.5 billion and $two.4 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 also minimal and ought to be turned down by shareholders. Micron hopes to shell out all-around one.10x product sales for Lexar though the marketplace leader SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also contains a $four hundred million patent infringement lawsuit versus Toshiba that it experienced Earlier received but has become subject matter to an appeal by Toshiba.
Think it over this way, a successful $four hundred million settlement in favor of Lexar would equate to all around $four.eighty three per share in supplemental funds to include to The existing $0.54 in no cost money after personal debt that Lexar has. This implies Micron would fork out http://xn--7y2br0oc8jnkbb1f.kr/ lower than $5 a share for Lexars belongings, which happens to be minimal.
There may be also speculation that SanDisk is seriously serious about using a operate at getting Lexar. This might sound right due to the fact SanDisk would solidify its Management position.
Also, SanDisk has http://www.thefreedictionary.com/소액결제 an in depth Doing the job connection with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to accumulate Lexar.
Stay tune. A Distinctive shareholder Conference to assessment the takeover bid has become moved to June sixteen. In my look at, the $10 bid undervalues Lexar. Problem is will a white knight surface area?