On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Technological know-how (MU). The revised bid sites the all-inventory exchange offer at all around $10 a share, up marginally through the Original bid.
But main shareholders together with billionaire Trader Carl Icahn in conjunction with hedge money and portfolio professionals have deemed the Original bid for being inappropriate. Elliott Associates believes the Preliminary bid “substantially undervalues Lexar,” and feels Lexar is really worth amongst $one.five billion and $2.4 billion. The estimate is nicely over the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way much too very low and needs to be turned down by shareholders. Micron desires to spend all-around one.10x sales for Lexar while the industry leader SanDisk (SNDK) is trading at four.35x income. Lexar also incorporates a $400 million patent infringement lawsuit from Toshiba that it had Earlier won but is now issue to an attraction by Toshiba.
Think it over in this manner, a successful $400 million settlement in favor of Lexar would equate to all-around $four.83 per share in additional hard cash to incorporate to the current $0.fifty four in totally free money after debt that Lexar has. This suggests Micron would pay out fewer than $five a share for Lexars assets, which happens to be lower.
There's also speculation that SanDisk is very seriously thinking about using a operate at attaining Lexar. This is able to seem 소액결제현금화 sensible considering the fact that SanDisk would solidify its Management placement.
Additionally, SanDisk has https://en.wikipedia.org/wiki/?search=소액결제 a close Performing marriage with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to amass Lexar.
Stay tune. A Particular shareholder Assembly to assessment the takeover bid has actually been moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Issue is will a white knight surface area?