On Friday, flash media maker Lexar Media (LEXR) been given an increased revised takeover bid from Micron Technologies (MU). The revised bid sites the all-inventory exchange supply at close to $ten a share, up marginally from your First bid.
But main shareholders such as billionaire Trader Carl Icahn coupled with hedge money and portfolio supervisors have considered the initial bid to be inappropriate. Elliott Associates thinks the initial bid “noticeably undervalues Lexar,” and feels Lexar is worthy of concerning $1.five billion and $two.four billion. The estimate is Additional info well higher than the revised takeover bid of about $827 million.
I must concur and say the revised takeover bid is way much too lower and should be turned http://www.bbc.co.uk/search?q=소액결제 down by shareholders. Micron hopes to spend all-around 1.10x revenue for Lexar when the marketplace chief SanDisk (SNDK) is investing at four.35x revenue. Lexar also has a $400 million patent infringement lawsuit against Toshiba that it experienced Earlier gained but is now subject to an attractiveness by Toshiba.
Think it over in this way, a successful $400 million settlement in favor of Lexar would equate to about $four.eighty three for every share in further funds to incorporate to The present $0.54 in free income right after credit card debt that Lexar has. This suggests Micron would fork out less than $five a share for Lexars assets, and that is low.
There is also speculation that SanDisk is severely considering getting a run at obtaining Lexar. This might seem sensible given that SanDisk would solidify its Management position.
Additionally, SanDisk has a close Doing work marriage with Toshiba, which could see SanDisk fall or reduce the settlement if it managed to amass Lexar.
Stay tune. A Particular shareholder meeting to overview the takeover bid has been moved to June 16. In my watch, the $10 bid undervalues Lexar. Dilemma is will a white knight floor?