Micron – Lexar Deal Details Revealed in SEC Filing
Lexar Media had merger talks with 11 different companies, but only two firms, including eventual winner Micron, made formal bids. In an SEC filing earlier this month, Elliott Associates, which owns 6.5% percent of Lexar, stated its extreme displeasure with the Micron deal, which it claimed “falls meaningfully short of Lexar’s standalone value.” Now it seems that the entire deal doesn’t look to many of those invested in Lexar.
In a much-anticipated Securities and Exchange Commission filing Tuesday, Micron and Lexar laid out the background of a controversial sales process that culminated with Micron’s offer to acquire Lexar on March 8. The deal has drawn opposition from a group of hedge funds, claiming that it significantly undervalues Lexar. Meanwhile, Lexar’s warning on Tuesday that first-quarter revenue could be as much as 50% below Wall Street expectations underscores the company’s difficulties of continuing operations as an independent entity.
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