Freescale getting a leveraged buyout for 16 billion, HOW much is OVTI valued at in a buyout offer???
Freescale Shares Gain on Report of Possible Sale (Update1)
By Aisha Phoenix
Sept. 11 (Bloomberg) — Shares of Freescale Semiconductor Inc. gained after the New York Times reported the No. 3 U.S. computer-chipmaker may be sold for more than $16 billion in the largest technology industry buyout.
Shares of Freescale, which was spun off from Motorola in July 2004, traded at the equivalent of $33.06 at 10:02 a.m. in Frankfurt, up 6.8 percent from the Sept. 8 closing price on the New York Stock Exchange. Before today the Class B shares had gained 23 percent this year, raising the company’s market value to $12.5 billion.
A group of investment firms including Texas Pacific Group, Blackstone Group LP, and Permira Advisers LLP is close to an agreement to buy Freescale, the New York Times said, citing unidentified people familiar with the deal. Carlyle Group and Bain Capital LLC may join the group, the newspaper reported.
“We can’t comment on this at the moment, but we will provide an update as soon as possible,'’ Regina Cirmonova, European media relations manager at Freescale, said today.
Freescale’s second-quarter profit more than doubled on an increase in sales and a tax-related gain, the company said in July. Sales of wireless and mobile products reached a six-year high of $514 million, or almost $100 million more than a year earlier, for the largest increase among company divisions, spokesman Glaston Ford said then.
The bidding group faces competition from Kohlberg Kravis Roberts & Co. and Silver Lake Partners, which submitted a rival offer, the New York Times said.
Freescale, which is based in Austin, U.S., has $843 million of bonds outstanding, according to Bloomberg data.