On Friday, flash media maker Lexar Media (LEXR) received a higher revised takeover bid from Micron Technology (MU). The revised bid areas the all-stock Trade offer at all over $10 a share, up marginally in the First bid.
But main shareholders like billionaire Trader Carl Icahn in addition to hedge money and portfolio professionals have considered the initial bid to generally be inappropriate. Elliott Associates believes the Original bid “appreciably undervalues Lexar,” and feels Lexar is value among $1.five billion and $two.4 billion. The estimate is perfectly over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way 소액결제현금화 also minimal and must be turned down by shareholders. Micron hopes to pay back about 1.10x sales for Lexar while the industry leader SanDisk (SNDK) is trading at four.35x http://www.thefreedictionary.com/소액결제 product sales. Lexar also incorporates a $four hundred million patent infringement lawsuit in opposition to Toshiba that it experienced Earlier gained but has become issue to an appeal by Toshiba.
Give it some thought using this method, a successful $four hundred million settlement in favor of Lexar would equate to all-around $four.83 per share in additional income to add to the current $0.54 in cost-free income following personal debt that Lexar has. This suggests Micron would fork out fewer than $5 a share for Lexars property, that's very low.
There may be also speculation that SanDisk is seriously pondering taking a run at getting Lexar. This may seem sensible considering that SanDisk would solidify its leadership placement.
In addition, SanDisk has a detailed Operating partnership with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to amass Lexar.
Stay tune. A Specific shareholder Assembly to evaluation the takeover bid has been moved to June 16. In my perspective, the $ten bid undervalues Lexar. Dilemma is will a white knight floor?