Mizuho analyst believes that the 8-K filing does introduce the possibility of potential acquisitions or mergers from China or potentially in the storage HDD space
Mizuho Securities analyst offered commentary on the latest step taken by #Micron Technology, Inc. (NASDAQ:MU) to make an acquisition more difficult. The largest American chipmaker has adopted a rights agreement, called #poisonpill, that would prevent from change of ownership if a person or group buys 5% or more of its outstanding stock.
According to a regulatory filing from Monday, this step would significantly allow Micron to retain tax benefits related to previous losses. The news sent a wave of rekindled speculations in the market of Micro being the potential acquisition target. Analyst Vijay Rakesh has affirmed a price target of $14 on Micron stock, which calls for a 0.5% potential upside over the last close of $13.92. Micron stock rose to six month high in yesterday’s trading session, gaining 6% to close at $13.92.
Mr. Rakesh commented, “The 8-K notes that the board can approve exceptions to the agreement for any investor or acquirer, if the board determines that it does not jeopardize the operating loss carry-forwards or if the board determines that the rights agreement is no longer in the best interest of the company and stockholders, and so we believe a friendly acquirer or merger could see benefits.”