SAN FRANCISCO Semiconductor memory supplier Micron Technology Inc. has upped the ante in its bid to acquire flash-memory card supplier Lexar Media Inc., saying Friday (June 2) it would offer more shares of its common stock to buy the company.
Micron (Boise, Idaho) increased its offer to 0.5925 shares of common stock for each share of Lexar (Fremont, Calif.). The company had previously offered 0.5625 shares of Micron stock for each Lexar share. The increase, based on Micron's share price as of midday trading Friday, boosts the overall value of the deal to more than $800 million.
Micron announced in March that it had acquired Lexar in a bid to enter the flash-card business and go head-to-head against SanDisk Corp. At the time, the bid was worth roughly $680 million. But several investment firms, including billionaire financier Carl Icahn, balked, saying Lexar should hold out for a better offer.
Exactly what prompted Micron to increase its offer is unclear. Lexar said Friday it would adjourn a special meeting of stockholders in Fremont to allow additional time for Lexar and Micron to agree upon the terms of an amendment to the merger agreement and, if one is entered into, to provide Lexar stockholders with additional information. Lexar shareholders are now scheduled to vote on the merger June 16.
A Micron spokesperson Friday declined to comment on the increased offer. The spokesperson said Micron continues to believe that a merger is in the best interests of both companies. The fate of the acquisition bid will be known June 16, the spokesperson said, following the Lexar shareholder vote.
The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with Micron's proposed acquisition of Lexar, expired in April, Micron said.