Re: LOCO; VSH & UMC
El Pollo Loco (NASDAQ: LOCO) received an unsolicited, non-binding buyout offer from Biglari Capital Corp. on April 6, 2025, to acquire all outstanding shares it does not already own 1 3 4. The proposal, disclosed in an SEC filing, prompted a 15.3% surge in LOCO's stock price 1 4. While the offer price remains undisclosed, Biglari Capital holds approximately 4.5% of LOCO through various entities 3.
Key details:
- Current status: El Pollo Loco’s board is evaluating the proposal with financial and legal advisors but has not set a decision timeline 1 4.
- Agreements: A confidentiality agreement with a standstill provision was signed between the parties on April 6, 2025 1 4.
No competing offers or additional bid terms have been publicly disclosed. The company stated it will not comment further unless necessary
Doubled up on Vishay Intertechnology (VSH)
Also started position in United Microelectronics Corp ADR (UMC)
Merger Proposal for United Microelectronics Corp (UMC)
U.S.-based semiconductor manufacturer GlobalFoundries is reportedly exploring a merger with Taiwan’s United Microelectronics Corp (UMC) 1 3 7. The proposed deal aims to create a larger U.S.-centric entity with production capabilities spanning Asia, the U.S., and Europe, potentially positioning it as a competitor to Taiwan Semiconductor Manufacturing Company (TSMC) 1 3.
- Market Valuations: GlobalFoundries holds a market capitalization of ~$20 billion, while UMC is valued at ~$17 billion 1 5. The merger could face financial and regulatory hurdles due to the size disparity and geopolitical sensitivities 1 5.
- Strategic Rationale: The merger seeks to secure U.S. access to mature chip technologies amid rising tensions between China and Taiwan, as well as China’s growing semiconductor independence 1 3 7. UMC has denied current merger discussions, citing past unsuccessful attempts
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