Cypress Semi Jumps After Said To Push For Higher Bid As Multiple Suitors Circle

Shares of Cypress Semiconductor  (CY) 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) 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.

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

Reporting by Jessica de Sa-Mota.

The Fly is a leading digital publisher of real-time financial news. Our financial market experts understand that news impacting stock prices can originate from anywhere, at any time. The Fly team scours all sources of company news, from mainstream to cutting-edge, then filters out the noise to deliver short-form stories consisting of only market moving content. Follow @theflynews on Twitter. For a free trial, click here.

More from Investing

Trump's Tariff Attack Hasn't Brought Pain to These Hot Stocks

Trump's Tariff Attack Hasn't Brought Pain to These Hot Stocks

Biotech Firm Sarepta Surges 40% on Positive Test Results

Biotech Firm Sarepta Surges 40% on Positive Test Results

18 Auto Stocks Trump Just Ran Over With His China Tariff Attack

18 Auto Stocks Trump Just Ran Over With His China Tariff Attack

3 Ways for Retirees to Protect Their Portfolios In Volatile Stock Markets

3 Ways for Retirees to Protect Their Portfolios In Volatile Stock Markets

Goldman Will Pay Big Money for Cash -- Yes, Even Your Measly Savings

Goldman Will Pay Big Money for Cash -- Yes, Even Your Measly Savings