Micron Technology surges 12% in pre-market trade on reports of Tsinghua Unigroup bid

Shares in US chipmaker Micron Technology surged 12% in pre-market trade following press reports that China’s state-owned Tsinghua Unigroup is planning to offer $23bn for the business, in a deal that would be the biggest Chinese takeover of a US company.

According to press reports, the offer price of $21 a share represents a 19% premium to Micron’s closing price on Monday.

In May, Tsinghua purchased a $2.3bn majority stake in Hewlett Packard’s Chinese server, storage and technology unit.

Tsinghua Unigroup said on Tuesday that a deal was “still under discussion.”

Micron makes dynamic random access memory chips used mostly in personal computers and NAND memory chips for storing music, pictures and other data.