On Friday, flash media maker Lexar Media (LEXR) received a greater revised takeover bid from Micron Technological know-how (MU). The revised bid areas the all-stock exchange supply at close to $10 a share, up marginally in the Preliminary bid.
But big shareholders together with billionaire investor Carl Icahn coupled with hedge funds and portfolio supervisors have considered the First bid for being inappropriate. Elliott Associates thinks the initial bid “substantially undervalues Lexar,” and feels Lexar is value in between $one.5 billion and $2.4 billion. The estimate is nicely earlier mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way also lower and really should be turned down by shareholders. Micron wishes to pay out all around 1.10x sales for Lexar even though the market leader SanDisk (SNDK) is trading at 4.35x sales. Lexar also incorporates a $four hundred million patent infringement lawsuit from Toshiba that it had Earlier received but is currently subject to an enchantment by Toshiba.
Think it over by doing this, a successful $400 million settlement in favor of Lexar would equate to around $4.83 for every share in added cash to incorporate to The present $0.fifty four in totally free dollars following debt that Lexar has. What this means 신용카드현금화 is Micron would pay out fewer than $5 a share for Lexars assets, that's low.
There may be also speculation that SanDisk is very seriously thinking about getting a operate at attaining Lexar. This might seem sensible given that http://edition.cnn.com/search/?text=소액결제 SanDisk would solidify its Management posture.
Moreover, SanDisk has an in depth Functioning marriage with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to accumulate Lexar.
Keep tune. A Distinctive shareholder Conference to critique the takeover bid has been moved to June sixteen. In my perspective, the $10 bid undervalues Lexar. Problem is will a white knight surface?