On Friday, flash media maker Lexar Media (LEXR) acquired the next revised takeover bid from Micron Engineering (MU). The revised bid spots the all-stock Trade present at all-around 신용카드현금화 $10 a share, up marginally from the First bid.
But major shareholders including billionaire Trader Carl Icahn coupled with hedge resources and portfolio professionals have considered the First bid to become inappropriate. Elliott Associates believes the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is worth in between $1.five billion and $2.4 billion. The estimate is well earlier mentioned the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way much too small and has to be turned down by shareholders. Micron really wants to pay around one.10x sales for Lexar even though the marketplace leader SanDisk (SNDK) is trading at 4.35x product sales. Lexar also has a $four hundred million patent infringement lawsuit against Toshiba that it experienced previously gained but has become subject matter to an appeal by Toshiba.
Give it some thought in this way, a successful $400 million settlement in favor of Lexar would equate to all around $4.eighty three per share in further funds to add to the current $0.54 in free money following financial debt http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 that Lexar has. This suggests Micron would pay a lot less than $five a share for Lexars property, and that is small.
You can find also speculation that SanDisk is severely pondering taking a run at getting Lexar. This might seem sensible because SanDisk would solidify its leadership placement.
Moreover, SanDisk has a detailed working relationship with Toshiba, which could see SanDisk fall or lessen the settlement if it managed to acquire Lexar.
Keep tune. A Specific shareholder meeting to evaluation the takeover bid has actually been moved to June sixteen. In my watch, the $10 bid undervalues Lexar. Problem is will a white knight floor?