On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Engineering (MU). The revised bid sites the all-stock Trade provide at about $10 a share, up marginally from the First bid.
But important shareholders such as billionaire Trader Carl Icahn in conjunction with hedge http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 funds and portfolio managers have deemed the First bid to be inappropriate. Elliott Associates believes the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is well worth involving $1.5 billion and $two.four billion. The estimate is well higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too minimal and needs to be turned down by shareholders. Micron really wants to pay out about one.10x revenue for Lexar even though the market leader SanDisk (SNDK) is trading at 4.35x income. Lexar also features a $four hundred million patent infringement lawsuit towards Toshiba that it had previously won but is now subject matter to an appeal by Toshiba.
Think it over this way, a successful $400 million settlement in favor of Lexar would equate to close to $four.83 per share in extra hard cash so as to add to The existing $0.fifty four in free income immediately after debt that Lexar has. This suggests Micron would fork out a lot less than $5 a share for Lexars belongings, which can be lower.
There exists also speculation that SanDisk is seriously serious about getting a operate at attaining Lexar. This may seem sensible considering the fact that SanDisk would solidify its leadership situation.
Additionally, SanDisk has a close Doing the job connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to acquire Lexar.
Remain tune. A Unique shareholder meeting to critique the takeover bid has actually been moved to June sixteen. In my perspective, the $ten 소액결제정책 bid undervalues Lexar. Dilemma is will a white knight surface area?