Mindspeed (MSPD) Soars, Suntech (STP) Skids

NEW YORK (TheStreet) -- Microcap Mindspeed Technologies (MSPD) exploded 68.4% to $5 after closing its fiscal year on a high, while Suntech Power (STP) looks worse for wear, plunging 16% to $1.26.

The former, a semiconductor maker, has agreed to be acquired by M/A-COM Technology Solutions (MTSI) for $5.05 a share, a 70% premium on Tuesday's close of $2.97.

"The company shares our commitment to innovation, and the two companies complement each other well, particularly within the high-performance analog market segment," said Mindspeed CEO Raouf Halim in a statement. "We will have the scale and resources to deliver innovative technologies to our customers and drive growth, with a larger portfolio of products and a global sales force."

The Newport Beach, Calif.-based company also said it is in "advanced discussions with a strategic acquirer" of Mindspeed's wireless business. Any potential sale would be separate from the M/A-COM transaction.

The company also reported fourth-quarter earnings of 2 cents a share, 4 cents higher than analysts surveyed by Thomson Reuters had expected. Revenue of $36.04 million was largely in line with forecasts.

Suntech Power, meanwhile, plummeted 16% to $1.26 as its future looks increasingly uncertain. The Chinese supplier of renewable energy equipment filed for provisional liquidation in the Cayman Islands, where it is incorporated. Should the courts grant clemency, the company will undertake a restructuring to return to profitability. Suntech is currently considering a Chapter 15 filing stateside.

On Monday, Suntech announced it was selling its main China assets to Hong Kong-listed Shunfeng Photovoltaic for around $492 million. Wuxi Suntech Power, one of the units purchased, was declared insolvent earlier this year.

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