Feeds

Freescale bidding war declared

Hot chips, cold cash

Build a business case: developing custom apps

Computer chip maker Freescale Semiconductor, a spin-off of Motorola, has announced that it is in talks with several possible investors.

According to reports the company, which makes chips used in mobile phones, computer networks and automotive markets, could attract a $16bn price tag. If acquired this could be the largest leveraged buyout deal of its kind in the technology sector.

On Friday Freescale's shares closed at $30.75. Its closing share price yesterday was $37.06, giving it a market capitalization of $15bn. Freescale only split off from Motorola in 2004, with a share price of $13 per share.

Bidders have not been identified though sources suggest that a private equity consortium made up of Blackstone Group, Permira Advisors, Texas Pacific Group and Carlyle Group is looking to invest.

Talks have apparently been going on for several months between the Blackstone-Permira group and Freescale.

A rival consortium consisting of Silver Lake Partners, Bain Capital, Kohlberg Kravis Roberts & Co, and Apax Partners has also reportedly bid for the semiconductor business, putting in a higher offer last weekend.

The Kohlberg-Silver Lake group bought Philips Electronics' semiconductor unit last month and could be looking to merge it with Freescale.

Freescale is yet to comment further on any "possible business transaction" but it's a deal that highlights the changing fortunes of the semiconductor sector, which is now ripe for private equity.®

The essential guide to IT transformation

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?