On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Technological innovation (MU). The revised bid locations the all-inventory exchange supply at close to $10 a share, up marginally through the First bid.
But important https://www.washingtonpost.com/newssearch/?query=소액결제 shareholders which include billionaire Trader Carl Icahn along with hedge resources and portfolio administrators have deemed the Preliminary bid being inappropriate. Elliott Associates believes the First bid “drastically undervalues Lexar,” and feels Lexar is well worth among $1.5 billion and $two.4 billion. The estimate is very well above the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way far too lower and must be turned down by shareholders. Micron wants to fork out around 1.10x gross sales for Lexar even though the industry chief SanDisk (SNDK) is trading at 4.35x income. Lexar also incorporates a $four hundred million patent infringement lawsuit from Toshiba that it had previously received but is currently topic to an appeal by Toshiba.
Consider it this way, A prosperous $four hundred million settlement in favor of Lexar would equate to all around $four.eighty three for each share in further money to add to the current $0.54 in free of charge dollars following debt that Lexar has. This means Micron would fork out fewer than $five a share for Lexars belongings, which can be small.
There may be website also speculation that SanDisk is severely pondering having a operate at attaining Lexar. This could make sense because SanDisk would solidify its leadership position.
What's more, SanDisk has a close Functioning connection with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Remain tune. A Exclusive shareholder meeting to evaluation the takeover bid continues to be moved to June 16. In my watch, the $ten bid undervalues Lexar. Question is will a white knight area?