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GigOptix renews USD 161 mln bid for GSI Technologies
2015-06-04 21:15:00| Telecompaper Headlines
(Telecompaper) US Chip component maker GigOptix has renewed its bid for chipmaker GSI Technology, for the original price of USD 6.50 per share, or a total of around USD 161 million in cash, stock and special dividend. GigOptix originally made a bid in August 2014. GSI rejected the offer in September, and GigOptix withdrew in November. In a letter, GigOptix noted that GSI incurred over USD 30 million in litigation with its Cypress Semiconductor case, and that results continue to disappoint the investor community. Revenues for GSI's fiscal year to end March fell 8.7 percent from the year before. GigOptix revenues lifted 23 percent to the quarter to end March. In this light, the company is urging GSI shareholders to give due consideration to the offer, saying a combination would create significant synergies between the businesses.
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Category:Telecommunications