Chinese Company Preparing $23B Takeover Offer of Micron, Stock Jumps 

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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. 

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“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.




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