(Updates share prices.)
Oct. 19 (Bloomberg) -- Wi-Lan Inc., a Canadian patent licensing firm, raised its unsolicited bid for Mosaid Technologies Inc. by 11 percent to about C$532 million ($524.5 million) after Mosaid rejected the first offer.
Wi-Lan increased its cash bid to C$42 a share for Mosaid, a Canadian semiconductor company, the Ottawa-based bidder said today in a statement. That compares with a previous offer of C$38 a share.
Wi-Lan, which first made an offer for Mosaid in August, said the combination would have more than 4,200 patents that apply to wireless, consumer electronics and semiconductor technologies. The transaction would add to Wi-Lan’s adjusted earnings per share in fiscal 2012, the company said in the statement.
Mosaid, based in Kanata, Ontario, had rejected Wi-Lan’s original cash bid. The company advised shareholders in a statement today not to take any action until further notice as Mosaid is continuing to discuss options with other parties.
The takeover offer expires Nov. 1.
Mosaid rose C$1.41, or 3.5 percent, to C$42.27 at the close on the Toronto Stock Exchange. Wi-Lan fell 5 cents to C$6.11.
Bankers working with Wi-Lan include CIBC World Markets and Canaccord Financial Inc. Barclays Capital and GMP Securities are advising Mosaid.
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