On Friday, flash media maker Lexar Media (LEXR) obtained a higher revised takeover bid from Micron Technology (MU). The revised bid destinations the all-stock exchange provide at about $10 소액결제현금화 a share, up marginally from your Original bid.
But significant shareholders which include billionaire Trader Carl Icahn in conjunction with hedge cash and portfolio supervisors have deemed the Original bid to become inappropriate. Elliott Associates thinks the Original bid “noticeably undervalues Lexar,” and feels Lexar is truly worth among $1.five billion and $2.4 billion. The estimate is well previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too small and really should be rejected by shareholders. Micron desires to fork out http://www.thefreedictionary.com/소액결제 all over one.10x sales for Lexar whilst the industry leader SanDisk (SNDK) is investing at four.35x gross sales. Lexar also contains a $four hundred million patent infringement lawsuit in opposition to Toshiba that it had previously received but is now issue to an charm by Toshiba.
Think about it by doing this, An effective $four hundred million settlement in favor of Lexar would equate to all-around $four.83 per share in supplemental money to include to The existing $0.54 in cost-free money just after credit card debt that Lexar has. This suggests Micron would spend lower than $5 a share for Lexars belongings, which is lower.
There's also speculation that SanDisk is severely pondering getting a run at obtaining Lexar. This is able to sound right since SanDisk would solidify its leadership posture.
Moreover, SanDisk has an in depth Doing the job relationship with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to accumulate Lexar.
Remain tune. A Specific shareholder meeting to evaluation the takeover bid has actually been moved to June sixteen. In my view, the $10 bid undervalues Lexar. Concern is will a white knight area?