On Friday, flash media maker Lexar Media (LEXR) gained the next revised takeover bid from Micron Engineering (MU). The revised bid sites the all-inventory Trade offer you at all-around $ten a get more info share, up marginally through the initial bid.
But big shareholders including billionaire Trader Carl Icahn in addition to hedge resources and portfolio supervisors have considered the Original bid to generally be inappropriate. Elliott Associates thinks the initial bid “substantially undervalues Lexar,” and feels Lexar is worth concerning $1.five billion and $two.4 billion. The estimate is nicely higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way too very low and needs to be turned down by shareholders. Micron wishes to fork out about 1.10x revenue for Lexar while the market chief SanDisk (SNDK) is trading at 4.35x gross sales. Lexar also has a $400 million patent infringement lawsuit versus Toshiba that it experienced Formerly won but is now subject matter to an attractiveness by Toshiba.
Give it some thought in this way, a successful $four hundred million settlement in favor of Lexar would equate to around $4.eighty three per share in added dollars to include to The present $0.fifty four in absolutely free income immediately after financial debt that Lexar has. What this means is Micron would fork out a lot less than $five a share for Lexars property, which happens to be lower.
There's also speculation that SanDisk is severely thinking about using a operate at getting Lexar. This is able to make sense since SanDisk would solidify its leadership place.
Moreover, SanDisk has a detailed Doing work relationship with Toshiba, which could see SanDisk drop or decrease the settlement if it https://www.washingtonpost.com/newssearch/?query=소액결제 managed to obtain Lexar.
Remain tune. A Particular shareholder Conference to overview the takeover bid has been moved to June sixteen. In my look at, the $ten bid undervalues Lexar. Question is will a white knight floor?