On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-stock Trade give at all around $ten a share, up marginally from the Original bid.
But important shareholders such as billionaire Trader Carl Icahn in addition to hedge resources and portfolio managers have deemed the Preliminary bid to be inappropriate. Elliott Associates believes the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is really worth amongst $one.five billion and $two.4 billion. The estimate is perfectly earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also lower and ought to be rejected by shareholders. Micron wants to fork out around one.10x sales for Lexar even though the market leader SanDisk 소액결제현금화 (SNDK) is trading at four.35x profits. Lexar also provides a $400 million patent infringement lawsuit versus Toshiba that it had Earlier gained but http://www.bbc.co.uk/search?q=소액결제 has become issue to an attraction by Toshiba.
Think it over by doing this, An effective $four hundred million settlement in favor of Lexar would equate to about $four.83 per share in added money to incorporate to The present $0.fifty four in no cost hard cash right after financial debt that Lexar has. What this means is Micron would pay a lot less than $5 a share for Lexars belongings, that is low.
There may be also speculation that SanDisk is seriously pondering getting a operate at attaining Lexar. This would sound right due to the fact SanDisk would solidify its leadership placement.
What's more, SanDisk has a close Operating connection with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.
Continue to be tune. A Exclusive shareholder meeting to review the takeover bid has long been moved to June 16. In my perspective, the $ten bid undervalues Lexar. Query is will a white knight area?