On Friday, flash media maker Lexar Media (LEXR) gained a greater revised takeover bid from Micron Technological know-how (MU). The revised bid spots the all-inventory Trade provide at all-around $ten a share, up marginally in Additional hints the initial bid.
But key shareholders together with billionaire Trader Carl Icahn together with hedge resources and portfolio administrators have considered the First bid being inappropriate. Elliott Associates believes the First bid “noticeably undervalues Lexar,” and feels Lexar is worth in between $one.5 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 also lower and has to be turned down by shareholders. Micron wants to pay out all-around 1.10x revenue for Lexar when the marketplace leader SanDisk http://www.thefreedictionary.com/소액결제 (SNDK) is trading at four.35x product sales. Lexar also incorporates a $four hundred million patent infringement lawsuit against Toshiba that it had Formerly won but is currently subject to an appeal by Toshiba.
Give it some thought this fashion, a successful $400 million settlement in favor of Lexar would equate to about $four.83 for every share in further dollars to add to The present $0.54 in absolutely free hard cash soon after debt that Lexar has. This implies Micron would pay out lower than $five a share for Lexars property, and that is minimal.
There is also speculation that SanDisk is very seriously serious about using a run at obtaining Lexar. This could seem sensible given that SanDisk would solidify its leadership place.
Moreover, SanDisk has a close Performing romance with Toshiba, which could see SanDisk drop or reduce the settlement if it managed to amass Lexar.
Continue to be tune. A Particular shareholder Conference to review the takeover bid is moved to June sixteen. In my see, the $ten bid undervalues Lexar. Issue is will a white knight floor?