how-to-get-more-results-out-of-your-sinyongkadeuhyeongeumhwa

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On Friday, flash media maker Lexar Media (LEXR) obtained the next revised takeover bid from Micron Technological know-how (MU). The revised bid destinations the all-inventory Trade give at around $10 a share, up marginally within the First bid.

But major shareholders like billionaire investor Carl Icahn as well as hedge money and portfolio professionals have considered the Original bid being inappropriate. Elliott Associates thinks the Preliminary bid “considerably undervalues Lexar,” and feels Lexar is really worth amongst $one.5 billion and $two.4 billion. The estimate is very well earlier mentioned the revised takeover bid of about $827 million.

I need to concur and say the revised takeover bid is way way too lower and needs to be turned down by shareholders. Micron really wants to pay back all over 1.10x revenue for Lexar when the market leader SanDisk (SNDK) is buying and selling at 4.35x product sales. Lexar also contains a $four hundred million patent infringement lawsuit against Toshiba that it experienced Beforehand received but has become matter to an enchantment by Toshiba.

Consider it in this manner, a successful $four hundred million settlement in favor of Lexar would equate to all over $4.eighty three for each share in extra funds to include to The existing $0.54 in absolutely free hard cash right after debt that Lexar has. This implies Micron would pay out lower than $5 a share for Lexars assets, and that is minimal.

There exists also speculation that SanDisk is critically serious about taking a operate at buying Lexar. This would seem sensible since SanDisk would solidify its leadership position.

Also, SanDisk has a detailed Doing the job romance with Toshiba, which could see SanDisk drop or lessen the settlement if it managed to amass Lexar.

how-to-get-more-results-out-of-your-sinyongkadeuhyeongeumhwa

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