The UK-based chip manufacturer CSR Plc, which is known for pioneering Bluetooth wireless technology, said in an official statement today that it is “considering its options” after rejecting a takeover offer from Chandler, Arizona-based Microchip Technology Inc., sending shares up as much as 39%.
“The price proposed by Microchip has been rejected and the board is considering its options for the company,” the UK company said in a statement, adding that Microchip must say if it intends to continue with the negotiations by September 25th.
According to the Financial Times, the bid may have been as high as $3 billion.
Currently, CSR specializes in Bluetooth technology used in cars, satellites and many more, but is also tapping in the so-called “Internet of Things”, which is associated with connecting household devices and appliances to the Internet, allowing for complete and accurate remote control.
In 2013 CSRs Chief Executive Officer Mr. Joep van Beurden said that the company is benefiting from the fact that more and more devices connect to each other through Bluetooth and other technologies.
However, the company posted a profit of $193.7 million for the three months ended June 27th, which is a decline in comparison to the profit of $262.5 million posted over the same period a year ago. On the other hand, Microchip Technology Inc. revealed that it revenue for the quarter ended June 30th increased by 14.3% to $528.9 million in comparison to the result it announced for the same quarter a year earlier.
CSR Plc added 33.22% to trade at GBX 777.50 per share by 11:51 GMT, marking a one year change of +57.36%. The companys value as of the previous close was £946.38m (~$1.57bn).