China’s state-owned Tsinghua Unigroup Ltd. is reportedly preparing a $23 billion bid for chipmaker Micron Technology, San Diego, in what some say would be the biggest Chinese takeover of a U.S. company. Micron is the last remaining U.S. producer of DRAM memory chips. Potential purchase of Micron is regarded as a strategic move to help the advancement of China’s own chip sector, because the country reportedly has no major home-grown memory makers.
It would be the second such deal this year. In May, Hewlett-Packard sold a 51% stake in its data-networking business to Tsinghua for approximately $2.3 billion.
“Valuation appears low as a potential $21 a share bid is 8.3 times fiscal year PE or low end of the historic range of 7 to 15 whereas Micron was at $32 just 5 months ago,” UBS analyst Stephen Chin told MarketWatch. MarketWatch speculated that a cheap valuation could encourage other companies to launch their own bids
http://electroiq.com/blog/2015/07/chinese-chipmaker-tsinghua-prepares-23b-bid-for-micron-technology/
