A week after Allegro MicroSystems (ALGM) rejected a buyout proposal from ON Semiconductor (ON), ALGM stock is trading well below Onsemi's proposed takeout price. The stock action signals investor skepticism over whether Onsemi or another suitor could acquire the fabless semiconductor company.
On March 5, Onsemi publicly proposed to acquire Allegro for $35.10 a share in cash. The buyout price was a 57% premium to ALGM stock price before news of the deal leaked. The proposed acquisition valued Allegro at $6.9 billion.
↑ X NOW PLAYING Here's Why Difficult Times In The Market Make Things Easier For TradersOnsemi said it has made numerous attempts over the past six months to enter into constructive discussions regarding a potential transaction.
On March 6, Allegro announced that it had received an unsolicited acquisition proposal from Onsemi. Further, it said its board of directors had reviewed the proposal and determined that it was "inadequate."
In afternoon trades on the stock market today, ALGM stock was fell more than 7% to 25.67.
Meanwhile, ON stock was down more than 2% at 44.21.
According to IBD MarketSurge charts, ALGM stock has formed a cup base with a buy point of 33.26.
Both companies are suffering through a cyclical decline in demand for chips for automotive and industrial applications.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Nvidia Price Target Slashed As AI Stocks Swoon. 'No One Knows What's Going On,' Says Analyst.
Apple Stock Sinks As Siri AI Upgrade Delay Likely To Hurt iPhone Sales
See Stocks On The List Of Leaders Near A Buy Point
Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens
Join IBD Live For Stock Ideas Each Morning Before The Open
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。