Jan. 24 (Bloomberg) -- Gennum Corp., a semiconductor designer, soared 119 percent, the most since at least 1987, after agreeing to be bought by Semtech Corp. for about C$500 million ($494 million).
Semtech, based in Camarillo, California, will pay C$13.55 a share for Gennum, which makes products for the fiber-optics and broadcast industries. Gennum surged C$7.29 to C$13.44, the highest since 2007, as of 11:45 a.m. in Toronto. Semtech rallied 7.8 percent to $28.99 in New York.
“After a comprehensive review of Gennum’s strategic options, we are convinced that this is the best avenue to unlock the underlying value for shareholders that has been created by the Gennum team,” Gennum Chief Executive Officer Franz J. Fink said in a press release issued after markets closed yesterday.
Gennum, based in Burlington, Ontario, 50 kilometers (31 miles) southwest of Toronto, was founded as Linear Technology Inc. in 1973 from a division of Westinghouse Canada Inc. Its shares fell 15 percent in the year ending yesterday.
“This is the best possible outcome for Gennum shareholders given the company’s position in its respective markets,” Brian Piccioni, an analyst at Bank of Montreal, wrote in a note to clients.
--Editors: Jeff Sutherland, Michael P. Regan
To contact the reporter on this story: Matt Walcoff in Toronto at email@example.com
To contact the editor responsible for this story: Nick Baker at firstname.lastname@example.org