NEW YORK ( TheStreet) -- Shares of Zoran (ZRAN) were soaring 14% to $10.62 Tuesday afternoon after British wireless-chip maker CSR said it will acquire the semiconductor company for $679 million in a stock-swap deal.
The deal represented a 40% premium to the company's closing price on Friday. CSR said it expected the deal to boost profit per share by 10%. Zoran shareholders will receive 1.85 CSR shares for every Zoran share owned.
Zoran's largest shareholder, Ramius has, however, said the deal undervalues the company. Ramius, which holds a 9.3% stake in the company, is calling for the replacement of six members of the board with its own candidates.
"We are suspicious that the announced merger with CSR may be yet another attempt by the current board of Zoran to usurp the will of the shareholders," Ramius said in a press release.
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