03:55PM
Analog Devices confirms deal to buy Linear Technology for $14.8 billion ( ADI LLTC ) by Tomi Kilgore
Analog Devices Inc. ( ADI) announced plans to buy Linear Technology Corp. ( LLTC) in a deal that values the fellow analog technology company at $14.8 billion. Under terms of the deal, Linear Technology shareholders will receive $46 in cash and 0.2321 shares of Analog Devices for each Linear share they own. Based on Monday's closing prices, the deal values Linear shares at $60.05, or a 24% premium. Linear's stock shot up 29% to $62.49 in afternoon trade prior to a trading halt, after Bloomberg reported the companies were in advanced talks. Analog Devices shares had run up 3.9% prior a halt. Analog Devices said it expects to fund the transaction with 58 million new common shares, which would increase the total shares outstanding by about 19%, about $7.3 billion in new debt and cash on hand. The deal is expected to immediately add to Analog Devices adjusted earnings upon closure, which is anticipated to occur in the first half of 2017.
11:24AM
Texas Instruments' stock jumps to 16-year high after results prompt analyst upgrade ( TXN SMH SPX ) by Tomi Kilgore
Shares of Texas Instruments Inc. ( TXN) soared 6% to a 16-year high in morning trade Tuesday, after the chip maker's better-than-expected second-quarter results and upbeat outlook prompted an upgrade at Bank of America Merrill Lynch. Analyst Vivek Arya raised his rating to buy, after being at neutral for the past 15 months, and lifted his stock price target to $80 from $64. Arya wrote in a note to clients that the "strong" results and outlook address his near-term concerns over the impact of Brexit and other macro issues on the company's auto and industrial businesses. He said the next potential catalyst could be a dividend boost in September or October. The stock has run up 28% year to date, while the VanEck Vectors Semiconductor ETF ( SMH) has climbed 18% and the S&P 500 has gained 5.8%
Johnny: I would have thought TXN was the more logical buyer of LLTC, but it may be an anti-trust issue as TXN is the number one manufacturer of analog components. Given the weakness in handsets, PC, tablets, cameras and 4K TVs the strength is in car sales???? |
