CSR Confirms Approach From Microchip, Rejects Proposed Price; Stock Climbs

(RTTNews) - Shares of CSR plc (CSRE, CSRXF.PK, CSR.L) climbed around 26 percent in the morning trading on London, as it confirmed media reports of approach for a possible offer from US-based semiconductor company Microchip Technology Inc. (MCHP). However, CSR rejected the price proposed by Microchip, and its Board is considering its options for the company.

The multifunction connectivity, audio, and location platforms company noted that it has made the statement without prior agreement or approval of Microchip. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made.

J.P. Morgan Limited, which conducts its UK investment banking businesses as J.P. Morgan Cazenove, is authorised and regulated in the United Kingdom by the Financial Conduct Authority. J.P. Morgan Cazenove is acting as financial adviser exclusively for CSR.

CSR last month reported a significant growth in second-quarter profit on items, while underlying earnings were hurt by weak revenues, mainly reflecting a 70 percent decline in Legacy revenue.

In a recent deal, Microchip Technology agreed to buy ISSC Technologies Corp., a Taiwan-based provider of low power blue-tooth and advanced wireless solutions for the Internet Of Things market, for a total equity value of about $328.5 million and enterprise value of about $294.3 million.

In London, CSR shares were gaining 148 pence or 25.74 percent, and trading at 723 pence.

Microchip Technology closed Wednesday's trading at $47.66, down $0.16 or 0.33 percent.