Freescale sold himself for $ 17.6 billion

Freescale Semiconductor said it agreed to "sell itself" for $ 17.6 billion, or $ 40 in cash per share. "Buyer" is an alliance headed by Blackstone Group.

Analysts say this is a takeover of the largest technology firm in recent years, but according to the agreement, Freescale still has the ability to change its "sell-off" decision within 50 days.

Producing and supplying chips for almost all technology devices, from mobile phones to cars, Freescale is a target pursued by many giants. And finally, the Blackstone alliance defeated another private alliance to win a nod from Freescale.

Source: btielectronics " The price of $ 40 can be frightening for many people, but Freescale is really an attractive asset that everyone has to keep an eye on, " a source declined to comment.

For his part, Freescale said its board of directors agreed to adopt a proposal to buy from the Blackstone alliance. Some of the names involved in this alliance include Carlyle Group, Permira Funds and Texas Pacific Group.

After the contract, Freescale's share price rose 5.8% to $ 39.44 on the New York trading floor on Saturday. This price is also higher than Freescale's expected 2007 revenue / share more . 21 times.

Analysts say that Freescale's "sale" can spark a new wave of takeover that buyers are private alliances like Blackstoen. The market is particularly active for this trend as the chip industry is experiencing a slow but steady growth phase.

Earlier, AlpInvest, KKR and Silver Lake reached an agreement to buy 80.1% of the semiconductor division of Philips Electronics NV for € 3.4 billion last month.

If Freescale "flipped the boat", accepted an offer to buy from another alliance, they would have to pay the Blackstone alliance a "contract break" fine of $ 150 million or $ 300 million depending on time. Give decision.

Freescale's fastest growing industry is wireless and mobile systems. In both areas, Freescale is competing fiercely with big guys like Texas Instruments and Qualcomm.

Trong Cam