On Friday, flash media maker Lexar Media (LEXR) received a better revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-inventory exchange give at close to $ten a share, up marginally within the initial bid.
But important shareholders such as billionaire Trader Carl Icahn as well as hedge cash and portfolio managers have considered the Original bid for being inappropriate. Elliott Associates thinks the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is worthy of between $one.five 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 too low and must be turned down by shareholders. Micron would like to fork out all around 1.10x revenue for Lexar although the marketplace leader SanDisk (SNDK) is trading at four.35x income. Lexar also has a $four hundred million patent infringement lawsuit from Toshiba that it had Beforehand received but is now issue to an attractiveness by Toshiba.
Think about it this way, A prosperous $four hundred million settlement in favor of Lexar would equate to about $four.83 for each share in more cash to include to the current $0.fifty four in absolutely free hard cash right after debt that Lexar has. What this means is Micron read more would pay lower than $five a share for Lexars assets, which can be minimal.
There is certainly also speculation that SanDisk is severely considering using a operate at obtaining Lexar. This would seem sensible because SanDisk would solidify its Management posture.
Additionally, SanDisk has a detailed Doing work relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.
Keep tune. A Unique shareholder Conference to evaluation the takeover bid is moved to June sixteen. In my watch, https://www.washingtonpost.com/newssearch/?query=소액결제 the $ten bid undervalues Lexar. Problem is will a white knight surface area?