D.E. Shaw Increases Stake in Lexar to 7.9%

D.E. Shaw & Co. raised its stake in Lexar Media Inc. to 7.9%, becoming the third-largest shareholder and signaling it might enter the fight over Micron Technology Inc.’s $680-million bid for the company.

New York-based D.E. Shaw, a hedge fund run by David Shaw, announced its stake in a filing with the Securities and Exchange Commission. The fund follows Elliott Associates and billionaire Carl Icahn in buying shares of Lexar.