Feeds

Freescale bidding war declared

Hot chips, cold cash

Boost IT visibility and business value

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.®

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
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 ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.