On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Engineering (MU). The revised bid destinations the all-stock Trade offer you at all over $ten a share, up marginally in the Original bid.
But major shareholders which includes billionaire investor Carl Icahn in addition to hedge cash and portfolio supervisors have deemed the First bid to generally be inappropriate. Elliott Associates believes the initial bid “substantially undervalues Lexar,” and feels Lexar is truly worth amongst $one.five billion and $two.4 billion. The estimate is properly higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way much too small and has to be turned down by shareholders. Micron desires to pay around one.10x product sales for Lexar whilst the industry chief SanDisk (SNDK) is investing at 4.35x revenue. Lexar also has a $400 million patent infringement lawsuit towards Toshiba that it experienced Formerly gained but has become matter to an attractiveness by Toshiba.
Give it some thought using http://www.thefreedictionary.com/소액결제 this method, a successful $400 million settlement in favor of Lexar would equate to about $four.eighty three per share in further funds to add to The present $0.fifty four in absolutely free funds right after debt that Lexar has. This means Micron would pay out fewer than $5 a share for Lexars property, which happens to be reduced.
There exists also speculation that SanDisk is significantly thinking of having a run at getting Lexar. This may make sense given that SanDisk would solidify its Management placement.
Additionally, SanDisk has a close 소액결제정책 Doing the job connection with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to amass Lexar.
Remain tune. A Unique shareholder meeting to critique the takeover bid has been moved to June sixteen. In my perspective, the $10 bid undervalues Lexar. Query is will a white knight surface area?