NEW YORK (TheStreet) -- Shares of Integrated Silicon Solution (ISSI) were gaining 7.5% to $20.14 Thursday after the chipmaker received a letter from Cypress Semiconductor (CY) offering to buy the company.
In its letter to Integrated Silicon, Cypress offered to buy the company for $19.75 a share, representing a 16% premium over the chipmaker's closing price on Tuesday, according to the Wall Street Journal.
Cypress said its offer is superior to the $19.25 a share bid for the company by a group led by Summitview Capital in March. "We would have preferred to participate in your sale process, but were not contacted," Cypress said in its letter.
About 2.2 million shares of Integrated Silicon were traded by 12:09 p.m. Thursday, well above the company's average trading volume of about 406,000 shares a day.
TheStreet Ratings team rates INTEGRATED SILICON SOLUTION as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTEGRATED SILICON SOLUTION (ISSI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and disappointing return on equity."