On Friday, flash media maker Lexar Media (LEXR) acquired a greater revised takeover bid from Micron Know-how (MU). The revised bid areas the all-inventory Trade offer at close to $10 a share, up marginally from the Preliminary bid.
But big shareholders together with billionaire Trader Carl Icahn in conjunction with hedge funds and portfolio managers have deemed the Preliminary bid to be inappropriate. Elliott Associates believes the Original bid “significantly undervalues Lexar,” and feels Lexar is worth amongst $1.five billion and $two.4 billion. The estimate is well above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way way too reduced and should be turned down by shareholders. Micron desires to spend close to one.10x sales for Lexar when the industry chief SanDisk (SNDK) is buying and selling at 4.35x gross sales. Lexar also includes a $four hundred million patent infringement lawsuit towards Toshiba that it experienced Beforehand won but has become subject to an attractiveness by Toshiba.
Think about it using this method, A prosperous $400 million settlement in favor of Lexar would equate to around $4.83 per share in supplemental funds to incorporate to The existing $0.fifty four in no http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 신용카드현금화 cost dollars just after credit card debt that Lexar has. What this means is Micron would pay under $5 a share for Lexars property, that's reduced.
There exists also speculation that SanDisk is significantly thinking about taking a run at obtaining Lexar. This may seem sensible because SanDisk would solidify its leadership placement.
Additionally, SanDisk has an in depth Functioning romance with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to amass Lexar.
Continue to be tune. A Distinctive shareholder Conference to evaluation the takeover bid has become moved to June sixteen. In my check out, the $ten bid undervalues Lexar. Question is will a white knight floor?