On Friday, flash media maker Lexar Media (LEXR) been given a higher revised takeover bid from Micron Technological innovation (MU). The revised bid sites the all-inventory exchange supply at around $10 a share, up marginally through the First bid.
But significant shareholders like billionaire investor Carl Icahn in conjunction with hedge resources and portfolio managers have deemed the First bid for being inappropriate. Elliott Associates thinks the initial bid “considerably undervalues Lexar,” and feels https://www.washingtonpost.com/newssearch/?query=소액결제 Lexar is worth in between $one.five billion and $2.4 billion. The estimate is properly over the revised takeover bid of about $827 million.
I need to concur and say the revised takeover bid is way as well small and really should be turned down by shareholders. Micron desires to spend all-around one.10x profits for Lexar although the marketplace leader SanDisk (SNDK) is trading at four.35x profits. Lexar also provides a $four hundred million patent infringement lawsuit against Toshiba that it had Beforehand gained but has become subject to an attractiveness by Toshiba.
Consider it using this method, A prosperous $four hundred million settlement in favor of Lexar would equate to about $4.eighty three for every share in additional dollars so as to add to The existing $0.fifty four in free funds just after debt that Lexar has. This suggests Micron would fork out below $five a share for Lexars assets, which is minimal.
You can find also speculation that SanDisk is critically thinking of using a run at getting Lexar. This could sound right considering the fact that SanDisk would solidify 소액결제 its leadership position.
Also, SanDisk has an in depth Doing the job connection with Toshiba, which could see SanDisk drop or decrease the settlement if it managed to obtain Lexar.
Continue to be tune. A Unique shareholder Conference to review the takeover bid continues to be moved to June sixteen. In my look at, the $ten bid undervalues Lexar. Problem is will a white knight floor?