Chipmaker CSR soars on takeover reports
CSR's share price surged on Thursday on the back of rumours that the wireless technology firm is considering a sale.
According to the Financial Times, the UK chipmaker has received takeover offers from a number of rival semiconductor manufacturers.
It is thought the business could fetch a price of as much as $3bn. Wednesday's closing price was 575p, equal to a market capitalisation of £0.95bn or $1.57bn.
The company, formerly known as Cambridge Silicon Radio, makes components for devices that fall under the so-called 'Internet of Things' (IoT) umbrella, focusing on the voice and music, bluetooth, in-car infotainment, navigation and document imaging markets.
It has hired bankers to "sound out offers and assess merits of a sale", the FT said, citing people familiar with the matter.
The paper said that talks with one potential suitor could result in an agreement "within weeks", though the process is still thought to be at an early stage.
Analysts at Liberum said in an email: "We have long held that CSR is the most likely take-out target under our coverage given its attractive end market exposure (smart cars, connected home, IoT), significant tax assets ($110m deferred tax asset) and low tax rate thereafter (20%).
"There is a wave of M&A in the semiconductor space and premiums are going higher."
CSR's stock was up 24.3% at 714.5p by 09:48, having risen to an intraday high of 747.5p in morning trade.
BC