Mark LaPedus

EE Times

(03/22/2006 4:28 PM EST)

SAN JOSE, Calif. — Hedge fund D.E. Shaw raised its stake in Lexar Media Inc. to 7.9 percent in a possible move to block Micron Technology Inc.`s $680 million bid to acquire Lexar, according to the San Jose Mercury News.

D.E. Shaw (New York) is now the third largest shareholder in Lexar (Fremont, Calif.), according to the report. The hedge fund did not disclose if it would block the Micron-Lexar deal, but many believe the firm is “signaling” its intentions.

As reported, billionaire financier Carl Icahn and other investors are also attempting to break up Micron’s proposed $680 million deal to acquire Lexar.

And on Tuesday (March 21), Elliott Associates L.P. and its sister fund, Elliott International L.P., acquired a 6.5 percent stake in Lexar Media Inc. The hedge fund separately said that it opposes Micron Technology Inc.’s acquisition of Lexar.