On Friday, flash media maker Lexar Media (LEXR) gained the next revised takeover bid from Micron Technological know-how (MU). The revised bid areas the all-inventory exchange provide at all-around $10 a share, up marginally in the First bid.
But big shareholders like billionaire Trader Carl Icahn in conjunction with hedge resources and portfolio administrators have deemed the Preliminary bid being inappropriate. Elliott Associates believes the Preliminary bid “noticeably undervalues Lexar,” and feels Lexar is worth involving $1.5 billion and $two.four billion. The estimate is effectively previously mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way also lower and must be rejected by shareholders. Micron wants to shell out all-around one.10x income for Lexar although the market chief SanDisk (SNDK) is trading at four.35x revenue. Lexar also features a $400 million patent infringement lawsuit from Toshiba that it experienced Earlier gained but is now matter to an attraction by Toshiba.
Think about it this fashion, An effective $400 million settlement in favor of Lexar would equate to all-around $four.83 for every share in added dollars to incorporate to the current $0.54 in totally free dollars right after financial debt that Lexar has. What this means is Micron would spend fewer than $5 a share for Lexars assets, and that is low.
There's also speculation that SanDisk is very seriously considering taking a operate at attaining Lexar. This may make sense since SanDisk would solidify its Management place.
Furthermore, SanDisk has a detailed Doing https://www.washingtonpost.com/newssearch/?query=소액결제 work marriage with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to accumulate Lexar.
Remain tune. A Particular shareholder 소액결제정책 Assembly to evaluation the takeover bid has actually been moved to June 16. In my view, the $10 bid undervalues Lexar. Query is will a white knight area?