Home / Gadgets / Sources: Synaptics rejected bid from state-backed Chinese investor that valued it at almost $4B (Bloomberg Business)

Sources: Synaptics rejected bid from state-backed Chinese investor that valued it at almost $4B (Bloomberg Business)

Synaptics Inc., the maker of touch-screen technology used in phones, tablets and computers, rejected an offer from a state-backed Chinese investment group that valued the company at almost $4 billion, people with knowledge of the matter said. The group bid $110 per share for San Jose, California-based Synaptics, said the people, who asked not to be identified because the information is private. That reflects a 70 percent premium to the company’s closing share price Tuesday. Synaptics isn’t interested in selling at that level, one of the people said, and may be holding out for as much as $125 a share. Talks between the buyer and Synaptics are ongoing, the people said. Synaptics rose 12 percent to $72.57 at 11:05 a.m. New York time, after jumping as much as 26 percent, its largest one-day gain since June 2014. Shares have fallen 5.9 percent this year through Tuesday. The approach by the Chinese investors is the latest in a series of attempts by organizations from the country to acquire U.S.-based semiconductor operations. A successful bid would add Synaptics to the list of chip companies bought by China as president Xi Jinping drives the country toward technology independence. China, the biggest market for chips, is trying to improve domestic technology so it can provide more of the country’s needs. About 10 percent of its supplies currently come from Chinese producers. Beijing-based Hua Capital Management Co. led a $1.9 billion bid for Omnivision Technologies Inc., while a unit of China’s prestigious Tsinghua University has bought U.S.-listed Spreadtrum Communications Inc. and RDA Microelectronics Inc. Tsinghua also said today it’s acquired 15 percent of Irvine, California-based hard-drive maker Western Digital Corp

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Sources: Synaptics rejected bid from state-backed Chinese investor that valued it at almost $4B (Bloomberg Business)

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