SanDisk appears set to make Micron's acquisition of Lexar more difficult. A pair of reports circulating this week claim that SanDisk will make its own, uninvited bid for Lexar.
SanDisk has tapped Morgan Stanley for advice on the merits of a Lexar acquisition, according to the reports from The Deal and Reuters. Micron's offer for the memory device maker stands at $700m or close to $8.50 a share. A more lucrative offer from SanDisk could prove attractive to Lexar investors, although the Micron buy appears to make more sense from a competitive standpoint.
The Micron and Lexar marriage unites a memory maker with a memory seller, creating a pretty complete operation. A combined Lexar and SanDisk would hold more than 50 per cent of the market for flash cards, USB drives and related products. Such a union would be chock full of overlap and open few new avenues.
That begs the question as to whether or not a SanDisk bid for Lexar isn't just a competitive blow meant to disrupt Micron's pursuit of the company.
Some prominent Lexar shareholders have pushed for the company to seek better offers than Micron's $700m bid.
Close to a dozen companies – including Intel, Micron and SanDisk – are reported to have made previous offers for Lexar. At the moment, however, it seems that Micron and SanDisk are the most interested parties. ®