On Friday, flash media maker Lexar Media (LEXR) obtained an increased revised takeover bid from Micron Technologies (MU). The revised bid places the all-inventory Trade supply at all over $10 a share, up marginally from your initial bid.
But key shareholders like billionaire Trader Carl Icahn in conjunction with hedge money and portfolio supervisors have deemed the Preliminary bid to become inappropriate. Elliott Associates believes the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is worthy of among $one.five billion and $2.4 billion. The estimate is well earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well small and needs to be turned down by shareholders. Micron really wants to pay all-around one.10x income for Lexar even though the marketplace chief SanDisk (SNDK) is buying and selling at 4.35x revenue. Lexar also features a $four hundred million more info patent infringement lawsuit from Toshiba that it experienced Formerly gained but has become issue to an appeal by Toshiba.
Give it some thought in https://en.wikipedia.org/wiki/?search=소액결제 this way, An effective $400 million settlement in favor of Lexar would equate to about $4.83 for each share in added dollars to add to The present $0.fifty four in absolutely free hard cash soon after debt that Lexar has. What this means is Micron would fork out a lot less than $five a share for Lexars assets, which can be minimal.
There exists also speculation that SanDisk is critically considering getting a operate at obtaining Lexar. This may sound right since SanDisk would solidify its leadership placement.
Moreover, SanDisk has an in depth Doing the job connection with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.
Remain tune. A Specific shareholder Conference to overview the takeover bid is moved to June 16. In my watch, the $10 bid undervalues Lexar. Issue is will a white knight area?