Monday, 17 November 2014

Microchip finally rules itself out for CSR...

It's game over for investors that were betting on a potential counter bid from US group Microchip Technology for London-listed CSR.

This morning the US company said it will not proceed with making an offer for CSR after having approached the FTSE 250 company back in August. Here is a link to Microchip's statement: http://www.investegate.co.uk/microchip-technology/rns/statement-re-rule-2-8-no-intention-to-bid-csr-plc/201411170700041419X/

Still, it's interesting that it took Microchip until now to formally rule itself out from making a bid for CSR.

Indeed, quite a few risk arbitrageurs - such as GLG, Tiedemann and York Capital Management - had been building positions in CSR since Qualcomm announced its recommended £1.5 billion takeover offer for the British company.

Perhaps the hedge funds are punting on Broadcom stepping up for CSR instead?

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