On Friday, flash media maker Lexar Media (LEXR) gained a better revised takeover bid from Micron Technology (MU). The revised bid areas the all-inventory Trade provide at all around $ten a share, up marginally through the Preliminary bid.
But significant shareholders like billionaire Trader Carl Icahn together with hedge resources and portfolio managers have considered the initial bid to generally be inappropriate. Elliott Associates believes the Preliminary bid “significantly undervalues Lexar,” and feels Lexar is worth among $one.five billion and $2.four billion. The estimate is properly previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too lower and really should be turned down by shareholders. Micron wants to pay out around one.10x revenue for Lexar even though the marketplace chief SanDisk (SNDK) is buying and selling at 4.35x product sales. Lexar also includes a $400 million patent infringement lawsuit versus Toshiba that it experienced previously gained but is currently subject to an charm by Toshiba.
Give it some thought this fashion, A prosperous $400 million settlement in favor of Lexar would equate to around $four.eighty three per share in additional money to add to The existing $0.fifty four in free of charge dollars immediately after financial debt that Lexar has. This implies Micron would fork out below $five a share for 정보이용료 Lexars property, which can be low.
There is also speculation that SanDisk is critically considering getting a operate at getting Lexar. This may sound right given that SanDisk would solidify its Management placement.
Furthermore, SanDisk has an in depth Doing the job romance with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to acquire Lexar.
Keep tune. A Particular shareholder Assembly to overview the takeover bid has actually been moved to June sixteen. In my see, the $10 http://www.thefreedictionary.com/소액결제 bid undervalues Lexar. Concern is will a white knight surface?