On Friday, flash media maker Lexar Media (LEXR) received the next revised takeover bid from Micron Technological innovation (MU). The revised bid spots the all-inventory Trade give at close to $10 a share, up marginally with the First bid.
But big shareholders such as billionaire investor Carl Icahn together with hedge funds and portfolio professionals have considered the Preliminary bid to be inappropriate. Elliott Associates believes the initial bid “appreciably undervalues Lexar,” and feels Lexar is really worth concerning $1.five billion and $two.4 billion. The estimate is nicely higher than the revised takeover bid of about $827 million.
I need check here to concur and say the revised takeover bid is way much too very low and must be rejected by shareholders. Micron really wants to pay out all over 1.10x revenue for Lexar though the industry leader SanDisk (SNDK) is buying and selling at four.35x revenue. Lexar also includes a $400 million patent infringement lawsuit against Toshiba that it had Beforehand won but has become matter to an enchantment by Toshiba.
Think it over in this way, A prosperous $four hundred million settlement in favor of Lexar would equate to around $4.83 for every share in supplemental dollars so as to add to The present $0.54 in free income just after personal debt that Lexar has. This means Micron would pay back under $5 a share for Lexars property, that's small.
There is also speculation that SanDisk is seriously thinking of taking a run at attaining Lexar. This is able to make sense because SanDisk would solidify its leadership position.
Furthermore, SanDisk has an in depth http://www.bbc.co.uk/search?q=소액결제 Operating connection with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Remain tune. A Distinctive shareholder meeting to critique the takeover bid is moved to June 16. In my look at, the $10 bid undervalues Lexar. Question is will a white knight surface?