On Friday, flash media maker Lexar Media (LEXR) acquired a higher revised takeover bid from Micron Technologies (MU). The revised bid destinations the all-inventory exchange offer you at about $ten a share, 소액결제 up marginally from the initial bid.
But significant shareholders together with billionaire Trader Carl Icahn coupled with hedge money and portfolio managers have deemed the Original bid to get inappropriate. Elliott Associates thinks the initial bid “noticeably undervalues Lexar,” and feels Lexar is truly worth involving $1.5 billion and $two.four billion. The estimate is perfectly over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way far too lower and should be rejected by shareholders. Micron really wants to fork out all around 1.10x gross sales for Lexar when the industry leader SanDisk (SNDK) is trading at four.35x profits. Lexar also contains a $four hundred million patent infringement lawsuit versus Toshiba that it experienced Beforehand received but is currently subject to an charm by Toshiba.
Think about it by doing this, a successful $400 million settlement in favor of Lexar would equate to all-around $four.83 for every share in more money to incorporate to the current $0.54 in no cost hard cash right after credit card debt that Lexar has. This suggests Micron would shell out less than $5 a share for Lexars belongings, and that is low.
There exists also speculation that SanDisk is significantly serious about taking a run at getting Lexar. This is able to sound right considering that SanDisk would solidify its leadership posture.
Furthermore, SanDisk has a detailed Operating partnership with Toshiba, which https://en.wikipedia.org/wiki/?search=소액결제 could see SanDisk fall or decrease the settlement if it managed to obtain Lexar.
Remain tune. A Distinctive shareholder meeting to assessment the takeover bid has become moved to June sixteen. In my perspective, the $ten bid undervalues Lexar. Query is will a white knight surface?