Sector Update: Tech
Technology stocks were slightly lower Wednesday, with shares of technology companies in the S&P 500 retreating 0.2%.
In company news, Montage Technology ( MONT ) shares rose as much as 10% Wednesday after the specialty chip-maker agreed to a $693 million buyout offer from Shanghai Pudong Science and Technology Investment Co. Ltd.
The deal follows a strategic review by MONT, with shareholders now in line to receive $22.60 in cash for each of their shares, a 14.2% premium to Tuesday's closing price for its stock. The acquisition will require regulatory and shareholder approvals, with MONT saying it expects to schedule a vote as "promptly as practicable."
In prepared remarks, CEO Howard Yang said the transaction also provides the company with added operational flexibility, positioning MONT "to invest more strategically to drive powerful innovation and deliver cutting edge customer solutions."
Following the announcement, Jay Srivatsa at Chardan Capital Markets reduced his investment rating for MONT shares to Neutral from Buy.
MONT shares were ahead 8.9% at $21.53 each, earlier climbing to an intra-day high of $21.80 a share. The stock has a 52-week range of $10.00 to $26.70 a share, rising just under 98% through Tuesdays close since pricing its initial public offering of 5.3 million shares at $10 a share last Sept. 26.
In other sector news,
(+) SYNA, (+25.9%) Acquires Renesas SP Drivers for $475 mln and raises Q4 revenue outlook by $25 mln to a new range of $300 mln to $310 mln, topping analyst projections by at least $14.05 mln. Also issues upside revenue guidance for FY14.
(-) JCOM, (-1.6%) Announces plans for a $300 mln offering of convertible senior notes due 2029. Net proceeds will be used, after first paying offering expenses, for general corporate purposes, including possible acquisitions.
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