On Friday, flash media maker Lexar Media (LEXR) received a higher revised takeover bid from Micron Engineering (MU). The revised bid areas the all-inventory exchange provide at around $10 a http://query.nytimes.com/search/sitesearch/?action=click&contentCollection®ion=TopBar&WT.nav=searchWidget&module=SearchSubmit&pgtype=Homepage#/소액결제 share, up marginally from the Original bid.
But main shareholders which includes billionaire investor Carl Icahn along with hedge funds and portfolio supervisors have deemed the First bid for being inappropriate. Elliott Associates thinks the Preliminary bid “drastically undervalues Lexar,” and feels Lexar is worth in between $one.five billion and $two.4 billion. The estimate is effectively previously mentioned the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way much too minimal and must be rejected by shareholders. Micron wants to fork out all-around 1.10x profits for Lexar whilst the marketplace chief SanDisk (SNDK) is investing at 4.35x sales. Lexar also features a $four hundred million patent infringement lawsuit from Toshiba that it had Formerly gained but is currently matter to an enchantment by Toshiba.
Consider it by doing this, a successful $400 million settlement in favor of Lexar would equate to all around $four.eighty three for every share in more income to 소액결제현금화 incorporate to the current $0.54 in free cash just after financial debt that Lexar has. What this means is Micron would fork out below $five a share for Lexars belongings, that is small.
There may be also speculation that SanDisk is significantly pondering getting a run at attaining Lexar. This is able to sound right considering the fact that SanDisk would solidify its leadership placement.
Also, SanDisk has an in depth Doing the job connection with Toshiba, which could see SanDisk fall or decrease the settlement if it managed to amass Lexar.
Stay tune. A Particular shareholder Conference to review the takeover bid continues to be moved to June sixteen. In my check out, the $10 bid undervalues Lexar. Question is will a white knight area?