On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-stock Trade supply at all over $10 a share, up marginally with the Original bid.
But major shareholders together with billionaire investor Carl Icahn together with hedge money and portfolio supervisors have considered the First bid being inappropriate. Elliott Associates believes the First bid “noticeably undervalues Lexar,” and feels Lexar is value in between $1.5 billion and $two.4 billion. The estimate is properly over the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way way too small and has to be turned down by shareholders. Micron desires to pay back all around 1.10x gross sales for Lexar when the industry leader SanDisk (SNDK) is buying and selling at 4.35x product sales. Lexar also has a $four hundred million patent 소액결제현금화 infringement lawsuit towards Toshiba that it had Earlier won but is now subject matter to an attraction by Toshiba.
Think it over this way, a successful $four hundred million settlement in favor of Lexar would equate to close to $four.eighty three for each share in added money to include to The existing $0.fifty four in cost-free money just after financial debt that Lexar has. What this means is Micron would fork out lower than $five a share for Lexars property, which is low.
You can find also speculation that SanDisk is critically considering taking a operate at buying Lexar. This could sound right because SanDisk would solidify its leadership situation.
Moreover, SanDisk has a detailed Performing romance with Toshiba, which could see SanDisk drop or reduce the http://edition.cnn.com/search/?text=소액결제 settlement if it managed to acquire Lexar.
Continue to be tune. A Unique shareholder Assembly to assessment the takeover bid has been moved to June 16. In my view, the $10 bid undervalues Lexar. Query is will a white knight area?