Tsinghua bid for Micron could be biggest Chinese takeover of a U.S. company
Source: USA Today
A Chinese chip design company has submitted a $23 billion bid for Idaho-based Micron Technology. If the deal goes through, it would be the largest Chinese purchase of a U.S. company, the Wall Street Journal reported.
Tsinghua Unigroup offered $21 a share for Micron, almost 19% over its Monday closing price, the Journal said.
China's Shuanghui Internationalbought Smithfield Foods for $4.7 billion in 2013.
"I think this is enormous. Not only because of the size of it, but because a Chinese company is investing so much in such an important piece of technology," said Patrick Moorhead of Moor Insights and Strategy in Austin, Texas.
Read more: http://www.usatoday.com/story/tech/2015/07/13/tsinghua-unigroup-micron-technology-shuanghui/30112729/
DJ13
(23,671 posts)IDemo
(16,926 posts)China's state-owned Tsinghua Unigroup plans to submit an offer to buy U.S. chipmaker Micron Technology for $21 a share or $23 billion, according to Dow Jones.
If the deal goes through, it would be the biggest Chinese takeover of a U.S. company, dwarfing the $7 billion takeover of Smithfield Foods by Shuanghui International in May 2013.
Dow Jones, which initially said on Tuesday that the bid had been made, later reported Tsinghua had prepared an offer that, at $21 per share, represented a 19.3 percent premium to the Micron's close on Monday.
A Micron spokesman told Reuters that the Idaho-based firm had not received a takeover offer from Tsinghua. Meanwhile, Bloomberg reported an interview with Tsinghua chairman Zhao Weiguo, in which he said the Chinese company was "very interested in cooperation" with Micron.
http://www.cnbc.com/2015/07/13/chinas-tsinghua-unigroup-makes-23b-bid-for-micron-technology.html
London Lover Man
(371 posts)Chinese economy is in big serious of a bubble, and stock markets in China hasn't looked great.