On Friday, flash media maker Lexar Media (LEXR) acquired the next revised takeover bid from Micron Technologies (MU). The revised bid places the all-stock exchange offer you at close to $ten a share, up marginally with the Preliminary bid.
But important shareholders like billionaire investor Carl Icahn as well as hedge resources and portfolio managers have deemed the Preliminary bid for being inappropriate. Elliott Associates thinks the initial bid “appreciably undervalues Lexar,” and feels Lexar is value between $one.five billion and $2.four billion. The estimate is very well earlier mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way as well reduced and ought to be turned down by shareholders. Micron wishes to spend all-around one.10x product sales for Lexar even though the industry chief SanDisk (SNDK) is trading at four.35x revenue. Lexar https://en.wikipedia.org/wiki/?search=소액결제 also provides a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had Formerly received but is currently topic to an charm by Toshiba.
Think about it in this manner, a successful $four hundred million settlement in favor of Lexar would equate to all-around $4.83 per share in additional cash to include to The present $0.54 in no cost income just after financial debt that Lexar has. What this means is Micron would pay fewer than $5 a share for Lexars assets, that's reduced.
There's also speculation that SanDisk is very seriously contemplating using a run at obtaining Lexar. This might sound right considering the fact that SanDisk would solidify its leadership situation.
Also, SanDisk has a close Doing the job romance with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar.
Keep tune. A 소액결제 special shareholder meeting to critique the takeover bid has become moved to June 16. In my see, the $10 bid undervalues Lexar. Dilemma is will a white knight surface?