On Friday, flash media maker Lexar Media (LEXR) obtained a greater revised takeover bid from Micron Know-how (MU). The revised bid places the all-inventory exchange present at all over $10 a share, up marginally within the Preliminary bid.
But major shareholders like billionaire Trader Carl Icahn in addition to hedge cash and portfolio managers have considered the Preliminary bid to get inappropriate. Elliott Associates thinks the initial bid “appreciably undervalues Lexar,” and feels Lexar is value involving $1.5 billion and $two.four billion. The estimate is well higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way way too lower and ought to be rejected by shareholders. Micron desires to pay all-around one.10x gross sales for Lexar although the market leader SanDisk (SNDK) is investing at 4.35x sales. Lexar also has a $400 million patent infringement lawsuit from Toshiba that it experienced previously gained but has become matter to an appeal by Toshiba.
Consider it this way, An effective $400 million settlement in favor of Lexar would 소액결제현금화 equate to all-around $four.83 per share in additional money to incorporate to The existing $0.fifty four in free of charge income after personal http://www.thefreedictionary.com/소액결제 debt that Lexar has. This suggests Micron would shell out less than $five a share for Lexars property, and that is minimal.
There's also speculation that SanDisk is critically thinking of having a run at attaining Lexar. This may seem sensible since SanDisk would solidify its leadership placement.
Moreover, SanDisk has an in depth Doing work romance with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to obtain Lexar.
Remain tune. A Specific shareholder Conference to review the takeover bid continues to be moved to June sixteen. In my see, the $ten bid undervalues Lexar. Question is will a white knight floor?