On Friday, flash media maker Lexar Media (LEXR) received an increased revised takeover bid from Micron Technological know-how (MU). The revised bid areas the all-stock Trade present at around $ten a share, up marginally from your Preliminary bid.
But major shareholders which include billionaire Trader Carl Icahn together with hedge cash and portfolio professionals have deemed the Original bid to become inappropriate. Elliott Associates believes the initial bid “noticeably undervalues Lexar,” and feels Lexar is worthy of among $one.5 billion and $2.4 billion. The estimate is perfectly higher than the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way also small and has to be turned down by shareholders. Micron desires to fork out all over one.10x gross sales for Lexar when the marketplace leader SanDisk (SNDK) is trading at 4.35x gross http://edition.cnn.com/search/?text=소액결제 sales. Lexar also features 소액결제정책 a $four hundred million patent infringement lawsuit towards Toshiba that it experienced Beforehand gained but is currently topic to an appeal by Toshiba.
Think it over by doing this, a successful $400 million settlement in favor of Lexar would equate to around $four.eighty three for every share in added income to include to The existing $0.54 in totally free money soon after financial debt that Lexar has. This suggests Micron would pay out under $five a share for Lexars belongings, that's reduced.
You can find also speculation that SanDisk is seriously thinking of having a run at attaining Lexar. This might seem sensible considering that SanDisk would solidify its leadership posture.
Moreover, SanDisk has an in depth Operating romantic relationship with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Remain tune. A Exclusive shareholder Assembly to evaluate the takeover bid has been moved to June 16. In my perspective, the $ten bid undervalues Lexar. Concern is will a white knight surface area?