On Friday, flash media maker Lexar Media (LEXR) acquired an increased revised takeover bid from Micron Technological know-how (MU). The revised bid spots the all-stock Trade present at around $ten a share, up marginally in 소액결제정책 the initial bid.
But big shareholders together with billionaire investor Carl Icahn along with hedge resources and portfolio supervisors have deemed the Original bid to get inappropriate. Elliott Associates believes the initial bid “appreciably undervalues Lexar,” and feels Lexar is truly worth among $one.five billion and $two.four billion. The estimate is well above the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way also low and should be turned down by shareholders. Micron desires to pay out around one.10x gross sales for Lexar even though the market leader SanDisk (SNDK) is buying and selling at 4.35x sales. Lexar also includes a $four hundred million patent infringement lawsuit from Toshiba that it experienced Earlier gained but is currently topic to an attraction by Toshiba.
Think about it this way, a successful $400 million settlement in favor of Lexar would equate to all around $4.eighty three for each share in extra cash to incorporate to The existing $0.fifty four in cost-free funds following debt that Lexar has. This implies Micron would fork out below $five a share for Lexars assets, that's low.
There may be also speculation that SanDisk is significantly serious about having a run at getting Lexar. This could seem sensible considering that SanDisk would solidify its leadership placement.
Moreover, SanDisk has a close Performing marriage with Toshiba, https://en.wikipedia.org/wiki/?search=소액결제 which could see SanDisk fall or reduce the settlement if it managed to amass Lexar.
Stay tune. A Unique shareholder Conference to evaluation the takeover bid has long been moved to June sixteen. In my view, the $10 bid undervalues Lexar. Issue is will a white knight surface?