On Friday, flash media maker Lexar Media (LEXR) obtained a better revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-stock exchange offer you at close to $ten a share, up marginally through the Preliminary bid.
But significant shareholders which includes billionaire investor Carl Icahn in addition to hedge money and portfolio supervisors have considered the Original bid for being inappropriate. Elliott Associates thinks the Original bid “substantially undervalues Lexar,” and feels Lexar is really worth in between $one.5 billion and $two.4 billion. The estimate is well above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well low and really should be turned down by shareholders. Micron really wants to shell out close to one.10x product sales for Lexar although the market leader SanDisk (SNDK) is buying and selling at four.35x profits. Lexar also incorporates a $four hundred million patent infringement lawsuit from Toshiba that it experienced Formerly won but is currently matter to an attraction by Toshiba.
Think about it by doing this, A prosperous $400 million settlement in favor of Lexar would equate to all-around $four.83 for each share in added cash so as to add to The present $0.fifty four in free of charge dollars after debt that Lexar has. This suggests Micron would pay lower than $five a share for Lexars assets, which happens to be very low.
There's also speculation that SanDisk http://www.bbc.co.uk/search?q=소액결제 is significantly thinking of getting 정보이용료 a run at buying Lexar. This would sound right considering that SanDisk would solidify its Management situation.
In addition, SanDisk has a detailed Operating relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to amass Lexar.
Keep tune. A Particular shareholder Conference to assessment the takeover bid has been moved to June sixteen. In my perspective, the $ten bid undervalues Lexar. Query is will a white knight surface area?