Integrated Device Technology's stock jumps after disclosure of buyout bid
Shares of Integrated Device Technology Inc. spiked up as much as 23% in midday trade, before paring gains to be up just 3.8%, after the company disclosed the receipt of a buyout bid by an investor group led by Libin Sun. The group said in a letter to Integrated Device's board that it would pay $32 a share in cash for the shares they don't already own. That represents a 65% premium to Monday's closing price of $19.43, and would value the semiconductor maker at about $4.3 billion. The company was not immediately available for comment. The investor group currently owns roughly 5% of the shares outstanding, according to regulatory filings provided by the company, with Libin Sun owning 6 million shares, or 4.4% of the outstanding shares. The group said the buyout bid, which is nonbinding, will be financed with a combination of debt provided by loans from a third party and equity capital. The stock was down 24% year to date, while the S&P 500 has gained 0.7%.
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