On Friday, flash media maker Lexar Media (LEXR) received a better revised takeover bid from Micron Technological innovation (MU). The revised bid destinations the all-inventory Trade offer at close to $ten a share, up marginally within the initial bid.
But important shareholders together with billionaire Trader Carl Icahn in conjunction with hedge money and portfolio supervisors have deemed the First bid to get inappropriate. Elliott Associates believes the Original bid “noticeably undervalues Lexar,” and feels Lexar is truly worth involving $one.five billion and $two.4 billion. The estimate is well previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also low and must be turned down by shareholders. Micron would like to shell out about 1.10x revenue for Lexar when the market leader SanDisk (SNDK) is investing at four.35x gross sales. Lexar also contains a $400 million patent infringement lawsuit towards Toshiba that it experienced Beforehand gained but is currently matter to an attraction by Toshiba.
Consider it using this method, a successful $four hundred million settlement in favor of Lexar would equate to about $four.83 for every share in extra cash to include to The existing $0.54 in absolutely free dollars https://en.wikipedia.org/wiki/?search=소액결제 after personal debt that Lexar has. This means Micron would spend below $five a share for Lexars belongings, which happens to be low.
You can find also speculation that SanDisk is severely considering taking a run at buying Lexar. This might make sense given that SanDisk would solidify its Management place.
Moreover, SanDisk has an in depth Operating partnership with 신용카드현금화 Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Continue to be tune. A Distinctive shareholder meeting to review the takeover bid is moved to June sixteen. In my look at, the $ten bid undervalues Lexar. Dilemma is will a white knight surface area?