Weakness in mining shares has dragged down the market after recent rises, but technology company CSR is soaring on talk of a possible sale.
The company, whose chip designs are used in products such as mobile phones and bluetooth headsets, has jumped 141p or 25% to 716p following a report it was exploring a sale after being approached by several semiconductor companies.
Any deal could value it at around $3bn, said the Financial Times, which is nearly double its current market valuation. It was said to be in talks with a potential suitor, but so far there has been no confirmation. Analysts at Liberum said:
We have long held that CSR is the most likely take-out target under our coverage given its attractive end market exposure (smart cars, connected home, internet of things), significant tax assets ($110m deferred tax asset) and low tax rate thereafter (20%). There is a wave of M&A in the semiconductor space and premiums are going higher (IFX/IRF 50% premium, Cirrus/Wolfson – 74% premium).
Overall though the mood in the market is more subdued, with the FTSE 100 down 19.38 points at 6811.28. The mining sector has come under pressure following a fall in iron ore prices in China, a key consumer of metals.
So Rio Tinto is down 110.5p at 32.25 while Anglo American is 47p lower at 15.21 and BHP Billiton has lost 40.5p to 19.05.
But building supplies group CRH has climbed 27p to 14.25 after Credit Suisse raised its recommendation from underperform to outperform.
via The Guardian
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