Tuesday, April 28, 2009

Tundra stock closes above latest bid on heavy volume

Tundra stock closes above latest bid on heavy volumeOne-month TSX Tundra trading

A U.S. bidder has upped the price for Tundra Semiconductor Corp. of Ottawa, setting the scene for a possible bidding war.

Integrated Device Technology Inc. has made a $6.25 a share cash offer for Tundra, surpassing a $5.81 cash and stock bid made by Gennum Corp. of Burlington, Ont., on April 17.

The Integrated Device Technology bid is worth $120 million and is 12 per cent above the Gennum bid, Tundra said Monday in announcing the development.

Gennum now has five days to match the Integrated bid, or take a $5 million break fee to walk away from its deal with Tundra.

Tundra shares closed up 82 cents at $6.32 in TSX trading. When a target company's shares close above the bid price, it's often a sign that investors expect there will be a higher offer.

Volume was over two million shares, more than 20 times the recent daily average.

Gennum initially bid $4.43 in March, but suddenly boosted its offer to $5.81 on April 17.

All three companies are in the semiconductor business. Integrated is based in San Jose, Calif.