The report from Dow Jones that a Chinese company is looking to buy Boise-based Micron Technology came after Monday's closing bell on the NASDAQ exchange, but as soon as the headlines hit the wires, Micron's after-hours stock value jumped and remained high at NASDAQ's opening bell—trading
at nearly $20 a share Tuesday morning.
Dow Jones reports that Chinese government-backed Tsinghua Unigroup is submitting an offer to buy Micron for nearly $23 billion, or $21 per share. If successful, the takeover would be the largest Chinese acquisition of an American company.
“This is the right move for Tsinghua because Micron has memory chip technology, which is very hard to develop,” Gu Wenjun, chief analyst at iCwise, a Shanghai-based consulting company, told Bloomberg Business News
. “But there is only a small possibility U.S. regulators will approve this deal because it has a very strict review over offers from foreign capital, especially China.”
Meanwhile, a Micron spokesman told Bloomberg
that the Boise company had not received an offer from Tsinghua.
Tsinghua is China's largest government-owned chip design company and, this past May, purchased a $2.3 billion majority stake
in Hewlett-Packard's Chinese server, storage and technology unit.