CSR soars on extended deadline for US Microchip’s takeover bid

 
Oliver Smith
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BRITISH microchip firm Cambridge Silicon Radio (CSR) has extended the deadline for US company Microchip Technology to make a takeover bid for the group, which reportedly could be up to $3bn (£1.84bn).

CSR’s shares jumped 5.01 per cent yesterday after it announced the deadline extension, to close at 765p per share.

The silicon chip designer and software company had originally set the deadline at 5pm yesterday, but Microchip now has until 5pm on 15 October to come to a decision on whether it will make an offer.

The extension was made “to enable the parties to conclude their ongoing discussions,” according to a statement released by CSR this morning.

By the deadline CSR said: “Micro­chip must either announce a firm intention to make an offer for CSR or announce that they do not intend to make an offer… There can be no certainty that an offer will be made nor as to the terms on which any offer might be made.”

Last month, CSR rejected an initial offer from the American firm, saying “the price proposed by Microchip has been rejected and the board is considering its options for the company”.

Earlier this month, Microchip, the US maker of memory and analogue chips, sweetened its offer by revealing it is likely to pay cash for the firm should a deal be agreed.