On Friday, flash media maker Lexar Media (LEXR) gained a higher revised takeover bid from Micron Technological innovation (MU). The revised bid areas the all-stock exchange present at all over $ten a share, up marginally with the initial bid.
But key shareholders such as billionaire investor Carl Icahn as well as hedge funds and portfolio managers have considered the First bid to generally be inappropriate. Elliott Associates believes the Original http://www.bbc.co.uk/search?q=소액결제 bid “noticeably undervalues Lexar,” and feels Lexar is worth involving $one.five billion and $2.four billion. The estimate is nicely above the revised takeover bid of about $827 million.
I have to concur and say the revised takeover bid is way as well minimal and really 소액결제 should be rejected by shareholders. Micron hopes to pay back all over one.10x sales for Lexar even though the market leader SanDisk (SNDK) is trading at four.35x revenue. Lexar also contains a $four hundred million patent infringement lawsuit towards Toshiba that it had Formerly gained but has become subject matter to an enchantment by Toshiba.
Think about it in this way, An effective $400 million settlement in favor of Lexar would equate to about $four.eighty three for every share in added funds to incorporate to The existing $0.54 in free of charge cash following debt that Lexar has. What this means is Micron would pay back fewer than $five a share for Lexars property, which happens to be low.
There is certainly also speculation that SanDisk is very seriously considering getting a operate at buying Lexar. This would sound right due to the fact SanDisk would solidify its leadership posture.
Additionally, SanDisk has a close Functioning romance with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to accumulate Lexar.
Keep tune. A Specific shareholder meeting to evaluation the takeover bid has become moved to June 16. In my view, the $10 bid undervalues Lexar. Query is will a white knight area?