Semtech confirms buyout talks with Sierra Wireless

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The U.S.-listed shares of Canada-based networking company Sierra Wireless Inc. SWIR, -5.05% rose 0.2% in premarket trading and Canada-based semiconductor company Semtech Corp. SMTC, -3.26% dropped 0.8%, after Semtech confirmed that it was in talks to buy Sierra Wireless for $31 a share. That represents a 4.4% premium to Monday’s closing price for Sierra’s stock of $29.70. Sierra’s market capitalization as of Monday’s close was $1.14 billion. Sierra’s stock has shot up 19.4% on Monday, after Bloomberg reported that the company and Semtech were in “advanced” buyout talks, with a deal announcement possible within days. Semtech said Tuesday that no assurance could be given that an agreement will be reached. Semtech said it doesn’t plan to make any other announcements regarding the talks unless a deal is reached. Semtech shares have tumbled 34.3% year to date through Monday while Sierra’s stock has rocketed 68.6% and the S&P 500 SPX, -0.72% has lost 13.6%.

This article was originally published by Marketwatch.com. Read the original article here.

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