Shares of Cypress Semiconductor (CY) - Get Cypress Semiconductor Corporation Report are on the rise after a blog focused on merger and acquisition deals said that the company has received a takeover offer of $14 per share from Chinese firm Summitview Capital, but has rejected the bid as it awaits a higher offer. In a note to investors today, Craig-Hallum analyst Anthony Stoss said he believes Cypress is in play with potentially multiple bidders interested.

CYPRESS SAID TO HOLD OUT: According to a report by M&A reporter Ben Harrington on his Betaville blog, Cypress has been working with Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report to go over strategic options after receiving takeover interest from three private equity firms. Summitview Capital, a Chinese private equity firm and one of the firms allegedly interested in Cypress, submitted an indicative bid of roughly $14 per share for the company about three weeks ago, the report noted, citing a source. However, Cypress is said to have rejected the approach and is reportedly holding out for a bid of $15 per share, the publication said, adding that it believes TPG Capital is one of the other private equity firms interested in the company.

MULTIPLE BIDDERS: Craig-Hallum's Stoss said he believes Cypress is in play with potentially multiple bidders, following the rumors reported on by Betaville. Stoss noted that last year Summitview Capital got into a bidding war with Cypress over Integrated Silicon Solutions (ISSI) , a competitor to the latter in the memory business in the auto market, with Cypress having to back out as they could not compete with "the deep pockets of the Chinese Government." The analyst remains a buyer of Cypress amid takeover rumors, reiterating a Buy rating on the stock. Furthermore, given the rumors, he sees upside to his $12 price target on Cypress' shares. The company remains "nicely positioned" to benefit from the accelerating connected auto market longer term, and remains on track in its restructuring initiatives on its path to $1 in earnings per share by fiscal year 2018, Stoss told investors.

PRICE ACTION: In morning trading, shares of Cypress have gained about 4.5% to $11.38.

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OTHERS TO WATCH: Other companies operating in the same space as Cypress are also on the rise this morning, including Texas Instruments (TXN) - Get Texas Instruments Incorporated Report , Micron (MU) - Get Micron Technology, Inc. (MU) Report and NVIDIA (NVDA) - Get NVIDIA Corporation Report , which have gained almost 1%, and Intel (INTC) - Get Intel Corporation (INTC) Report , which is up about 0.5%.

Reporting by Jessica de Sa-Mota.

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