On Friday, flash media maker Lexar Media (LEXR) gained an increased revised takeover bid from Micron Engineering (MU). The revised bid sites the all-stock Trade provide at all-around $ten a share, up marginally in the Original bid.
But main shareholders which includes billionaire investor Carl Icahn in conjunction with hedge cash and portfolio professionals have considered the First bid being inappropriate. Elliott Associates believes the initial bid “drastically undervalues Lexar,” and feels Lexar is well worth in between $1.five billion and $two.4 billion. The click here estimate http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 is well over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way too small and needs to be rejected by shareholders. Micron wants to pay back around one.10x income for Lexar while the industry leader SanDisk (SNDK) is investing at four.35x profits. Lexar also provides a $400 million patent infringement lawsuit towards Toshiba that it experienced Earlier gained but is currently matter to an attractiveness by Toshiba.
Give it some thought this fashion, A prosperous $400 million settlement in favor of Lexar would equate to all-around $four.83 for each share in supplemental money to incorporate to The present $0.54 in totally free funds soon after personal debt that Lexar has. What this means is Micron would spend lower than $5 a share for Lexars property, that's lower.
There's also speculation that SanDisk is critically thinking about using a run at buying Lexar. This would seem sensible considering that SanDisk would solidify its leadership place.
Furthermore, SanDisk has a close Performing marriage with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to accumulate Lexar.
Stay tune. A Specific shareholder meeting to evaluation the takeover bid has become moved to June 16. In my look at, the $10 bid undervalues Lexar. Dilemma is will a white knight area?