By Colin Kellaher
Shares of Allegro MicroSystems rose sharply in premarket trading Thursday after the chip maker said it received and spurned a $6.9 billion takeover bid from larger peer ON Semiconductor.
ON late Wednesday said it proposed paying $35.10 a share in cash for Allegro, a 31% premium to Wednesday's closing price of $26.78 for the Manchester, N.H., company, and 57% above Friday's closing price of $22.30, before published reports that ON was circling the company.
Allegro shares were recently up 9% to $29.19 in premarket trading after gaining nearly 7% during Wednesday's session.
Allegro on Thursday said its board reviewed the proposal in consultation with its financial and legal advisers and found it to be inadequate.
ON, based in Scottsdale, Ariz., said it has made numerous attempts over the past six months to hold deal talks with Allegro, and that its most recent proposal, submitted on Feb. 12, is up from an initial bid of $34.50 a share it made in September.
Shares of ON, which sports a market capitalization of nearly $19.6 billion, were recently down 3.8% to $44.72 in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 06, 2025 05:57 ET (10:57 GMT)
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