On Friday, flash media maker Lexar Media (LEXR) been given the next revised takeover bid from Micron Engineering (MU). The revised bid sites the all-inventory exchange present at all over $ten a share, up marginally in the Original bid.
But significant shareholders like billionaire investor Carl Icahn in addition to hedge funds and portfolio supervisors have deemed the First bid to generally be inappropriate. Elliott Associates thinks the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is truly worth in between $1.5 billion and $2.four billion. The estimate is effectively over the revised takeover bid of about http://www.bbc.co.uk/search?q=소액결제 $827 million.
I need to concur and say the revised takeover bid is way as well low and should be turned down by shareholders. Micron hopes to shell out all-around 1.10x profits for Lexar whilst the market chief SanDisk (SNDK) is trading at 4.35x product sales. Lexar also incorporates a $four hundred million patent infringement lawsuit from Toshiba that it had Earlier gained but is currently matter to an attractiveness by Toshiba.
Give it some thought in this way, A prosperous $400 million settlement in favor of Lexar would equate to around $four.83 per share in supplemental hard cash so as to add to The present $0.54 in absolutely free money after financial debt that Lexar has. This implies Micron would pay under $5 a share for Lexars belongings, which happens to be small.
You can find also speculation that 신용카드현금화 SanDisk is significantly contemplating having a run at attaining Lexar. This could seem sensible considering that SanDisk would solidify its Management place.
In addition, SanDisk has a detailed Functioning relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to acquire Lexar.
Continue to be tune. A special shareholder Assembly to critique the takeover bid continues to be moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Question is will a white knight surface?