On Friday, flash media maker Lexar Media (LEXR) received an increased revised takeover bid from Micron Technology (MU). The revised bid places the all-stock exchange provide at all around $10 a share, up marginally with the Preliminary bid.
But important shareholders such as billionaire investor Carl Icahn in conjunction with hedge money and portfolio administrators have considered the Original bid being inappropriate. Elliott Associates believes the First bid “considerably undervalues Lexar,” and feels Lexar is worth involving $one.five billion and $two.four billion. The estimate is very well earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also very low and should be turned down by shareholders. Micron would like to spend about 1.10x revenue for Lexar though the industry chief SanDisk (SNDK) is buying and selling at 4.35x income. Lexar also features a $400 million patent infringement lawsuit against Toshiba that it experienced Formerly won but has become topic to an charm by Toshiba.
Consider it this fashion, a successful $400 million settlement in favor of Lexar would equate to all around $four.eighty three for each share in additional hard cash to include to The present $0.fifty four in no cost funds immediately after financial debt that Lexar has. This suggests Micron would pay out under $five a share for Lexars property, which can be very low.
There's also speculation that SanDisk is significantly thinking of getting a run at obtaining Lexar. This could sound right given that SanDisk would solidify its leadership place.
Also, SanDisk has a detailed Doing the job connection with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to accumulate Lexar.
Keep 신용카드현금화 tune. A Exclusive shareholder http://edition.cnn.com/search/?text=소액결제 Assembly to review the takeover bid has actually been moved to June 16. In my check out, the $ten bid undervalues Lexar. Dilemma is will a white knight surface area?