On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Know-how (MU). The revised bid sites the all-stock exchange supply at all-around $ten a share, up marginally with the initial bid.
But significant shareholders together with billionaire investor Carl Icahn in conjunction with hedge money and portfolio administrators have considered the Original bid being inappropriate. Elliott Associates believes the First bid “significantly undervalues Lexar,” and feels Lexar is really worth involving $1.5 billion and $2.4 billion. The estimate is nicely above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way far too reduced and must be rejected by shareholders. Micron would like to pay back around one.10x product sales for Lexar though the marketplace chief SanDisk (SNDK) is investing at four.35x sales. Lexar also incorporates a $400 million patent infringement lawsuit versus Toshiba that it experienced Earlier received but has become subject to an appeal by Toshiba.
Think about it in this way, a successful $400 million settlement in favor of Lexar would equate to around $4.eighty three for every share in more dollars to include to The present $0.54 in free of charge dollars just after financial debt that Lexar has. This implies Micron would pay out less than $5 a share for Lexars property, which can be small.
There is also speculation that SanDisk is significantly pondering taking a run at obtaining Lexar. This may seem sensible because SanDisk would solidify its leadership place.
Furthermore, SanDisk 정보이용료 has a detailed working romantic relationship with http://edition.cnn.com/search/?text=소액결제 Toshiba, which could see SanDisk drop or reduce the settlement if it managed to obtain Lexar.
Continue to be tune. A Distinctive shareholder meeting to overview the takeover bid has become moved to June 16. In my view, the $ten bid undervalues Lexar. Query is will a white knight surface area?