news digest ♦ Telecoms
Avago Announces Sale of 25 Million Ordinary Shares
All shares are being sold by existing shareholders and the underwriters have a 30-day option to purchase up to an additional 3,750,000 ordinary shares from certain shareholders, to cover over- allotments. Avago will not receive any proceeds from this offering.
Avago Technologies Limited has announced the sale of 25,000,000 ordinary shares by certain existing shareholders to Deutsche Bank Securities and Barclays Capital, as underwriters in the registered public offering of those shares.
All of the shares are being sold by existing shareholders identified in the prospectus supplement relating to the offering. In addition, the underwriters have a 30-day option to purchase up to an additional 3,750,000 ordinary shares from certain shareholders to cover over-allotments, if any. Avago will not receive any proceeds from this offering.
The ordinary shares are being offered under the Company’s existing shelf registration statement filed with the Securities and Exchange Commission on August 6, 2010. A prospectus supplement and base prospectus describing the terms of the offering will be filed with the Securities and Exchange Commission and may be obtained from Deutsche Bank Securities.
Avago is a leading designer, developer and global supplier of a broad range of analog semiconductor devices with a focus on III-V based products. Its extensive portfolio includes over 6,500 products in four primary target markets: wireless communications, wired infrastructure, industrial and automotive electronics, and consumer and computing peripherals.
Will Intel Purchase IQE?
UK’s Daily Mail says Intel may purchase compound semiconductor wafer manufacturer IQE.
Well above average turnover of late in the AIM stock exchange, compound manufacturer IQE is on the up; in the last week alone, the share price rose 23% to £0.53 at the time of publication.
More than 10 million shares changed hands on 12th January and the close was 4p better at a high of 52.25p amid whispers that a bullish trading update from the company is just around the corner.
Furthermore, according to the Daily Mail, Intel, the world’s largest semiconductor chip maker, is looking to buy the company with loose change.
The driver for IQE’s shares in recent weeks has been the explosive growth worldwide in the sale of mobile handsets. Much of IQE’s growth is related to smartphone sales. On average smartphones require more semiconductor materials than traditional mobile phones, to power the faster processors, color LCD screens, WiFi chips and 3G circuitry.
Intel is claimed to be just biding its time ahead of an imminent trading statement which should confirm that IQE’s full-year profits should exceed market expectations before launching a knock-out £487m or 95p a share cash offer for the company.
Last month broker Execution Noble placed 65m, or 14% of IQE’s equity at 32p a share. The £20.8m raised helped pay down debt and fund the acquisition of Galaxy Compound Semiconductors, a US specialist in components for infra-red detectors used in military applications.
Analysts were bullish about the deal saying the purchase of Galaxy provides IQE with complementary technology and strategic access to the US defense market.
CompoundSemicondcutor.net contacted IQE to ask about the possible buyout of the company by Intel. IQE spokesman Chris Meadows declined to comment.
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www.compoundsemiconductor.net January / February 2011
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