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Chinese investment firm offers ₹2,132/share for IDT

Posted: 14 Apr 2016     Print Version  Bookmark and Share

Keywords:IDT  SEC  acquisition  CIFUS 

Last Tuesday (April 12), a group of Chinese investors were reportedly offering to buy Integrated Device Technology (IDT) for $32 (₹2,132.40) per share in cash at the U.S. Securities and Exchange Commission (SEC). The group was composed of Libin Sun, Lian Xu, Halping Zhou, Zhibin Lin, Junping Chen, Libin Yang and Nauman Aly, all of which were claiming to own or have options on 4.9% of IDT's outstanding shares.

Now for the mystery: nobody has ever heard of this group, nor have they apparently ever filed before with the SEC. And IDT's stock closed at ₹1,022.22 ($15.34) Tuesday, before increasing significantly after the filing.

IDT issued a statement Tuesday, confirming the filings, but saying that this is the first that the company has heard of the group or the offer.

"These SEC filings represent the first and only information IDT has received from this group, and we have not had any communication whatsoever with any of these parties," said Greg Waters IDT's president and CEO. "At this time we are unaware of any other information that would support a determination that the group's proposal represents a credible bona fide offer to purchase the company. IDT will evaluate any further information that may be received from the group to determine whether a genuine and credible offer exists."

In recent months, several consortia of Chinese investment firms have waded into the waters of bidding for U.S. technology companies, particularly semiconductor companies, in support of China's initiative to build a domestic supply chain. The Committee on Foreign Investment in the United States, or CIFUS, has signaled hesitancy in allowing U.S. semiconductor technology to be acquired by China's state-backed firms, citing national security concerns.

- Dylan McGrath,
EE Times

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