On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Engineering (MU). The revised bid areas the all-inventory Trade offer at about $ten a share, up marginally within the First bid.
But main shareholders including billionaire Trader Carl Icahn as well as hedge money and portfolio administrators have deemed the Preliminary bid to be inappropriate. Elliott Associates believes the Original bid “appreciably undervalues Lexar,” and feels Lexar is worth among $one.5 billion and $2.4 billion. The estimate is nicely previously mentioned the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way also very low and ought to be rejected by shareholders. Micron wishes to pay back all around one.10x income for Lexar even though the industry leader SanDisk (SNDK) is investing at four.35x gross sales. Lexar also includes a $four hundred million patent infringement lawsuit versus Toshiba that it had Beforehand won but is currently matter to an appeal by Toshiba.
Think it over in this way, A prosperous $four hundred million settlement in favor of Lexar would equate to close to $4.83 for each share in further dollars to add to The present $0.fifty four in totally free hard cash just after credit card debt that Lexar has. This implies Micron would pay out a lot less than $five a share for Lexars property, which can be very low.
You can find also speculation that SanDisk is severely contemplating using a run at buying Lexar. This is able to seem sensible because SanDisk would solidify its Management place.
Moreover, SanDisk has a close Doing work connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to accumulate Lexar. 정보이용료
Keep tune. A Distinctive shareholder Conference to assessment the takeover bid is moved to June 16. In my view, the $10 bid undervalues http://www.bbc.co.uk/search?q=소액결제 Lexar. Question is will a white knight area?