Micron Technology Inc. is upping its bid in its play for Lexar Media Inc.

The DRAM company today announced that it is prepared to increase the exchange ratio that each outstanding share of Lexar common stock would receive in the merger from 0.5625 shares of Micron common stock to 0.5925 shares of Micron common stock.

The move comes after the planned merger was question by hedge fund investors in April. At that time, in a filing with the U.S. Securities and Exchange Commission (SEC) hedge fund investor Icahn Associates Corp. said it would not support the merger because price being paid for the flash maker was insufficient. Hedge funds have been buying up Lexar stock since the announcement of the Micron deal in March; altogether, hedge fund companies reportedly own about 46 percent of the outstanding shares of the company.

Today’s move by Micron is subject to approval of both its and Lexar’s boards of directors and is subject to Micron's determination that there is sufficient Lexar stockholder support for the merger at the revised exchange ratio, the company said.

In turn, Lexar announced that at today's special meeting of stockholders that it intends to adjourn the special meeting until June 16 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 related to such amendment and an opportunity to review such information.

By: DocMemory
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