On Friday, flash media maker Lexar Media (LEXR) received an increased revised takeover bid from Micron Technological innovation (MU). The revised bid places the all-inventory exchange present at about $ten a share, up marginally from the Original bid.
But big shareholders such as billionaire Trader Carl Icahn in addition to hedge cash and portfolio supervisors have deemed the Preliminary bid being inappropriate. Elliott Associates believes the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is worth between $one.five billion and $two.four billion. The estimate is effectively over the revised https://www.washingtonpost.com/newssearch/?query=소액결제 takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too reduced and has to be rejected by shareholders. Micron would like to pay out all over 1.10x sales for Lexar while the market chief 소액결제정책 SanDisk (SNDK) is buying and selling at 4.35x gross sales. Lexar also has a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Formerly gained but has become subject matter to an attractiveness by Toshiba.
Think it over using this method, A prosperous $four hundred million settlement in favor of Lexar would equate to all around $4.eighty three for each share in more money to add to The existing $0.fifty four in free hard cash following financial debt that Lexar has. This means Micron would shell out under $5 a share for Lexars property, which can be low.
There exists also speculation that SanDisk is significantly thinking of taking a run at attaining Lexar. This could seem sensible considering that SanDisk would solidify its Management placement.
Moreover, SanDisk has an in depth Performing romantic relationship with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.
Continue to be tune. A Particular shareholder meeting to review the takeover bid has become moved to June sixteen. In my look at, the $10 bid undervalues Lexar. Dilemma is will a white knight surface?