Synaptics soars on Chinese offer rumor

Shares of San Jose-based touchscreen maker Synaptics soared 27 percent on a published report Wednesday that a state-backed Chinese investor group has offered nearly $4 billion for the firm.

The report by Bloomberg quoted sources as saying Synaptics has shunned the offer.

Synaptics closed Wednesday at $82.46 a share, a leap of slightly more than 27 percent from the previous day’s close.

The company makes mobile computing touchscreens including a touch-sensitive pad that allows a person to control cursor movement with a finger. Its products include ClearPad, TouchPad and ClickPad, as well as Natural ID fingerprint authentication technology for smartphones, tablets and notebook computers.

The unnamed investor group bid $110 per share, Bloomberg said, quoting “people who asked not to be identified.”

That would be a 70 percent premium over the closing share price on Tuesday.

Synaptics may be holding out for as much as $125 a share, Bloomberg said, quoting sources.

If true, it would only be the latest attempt to acquire U.S. tech companies by Chinese investor groups, which have been spurred on by a massive Chinese government effort to ramp up that country’s semiconductor and tech industries.

Summitview Capital, a China-based investor group, acquired Integrated Silicon Solution Inc. in June for $765 million, besting a competing offer from Cypress Semiconductor. The vehicle for the purchase was Uphill Investment.

Another Chinese group with state connections bought Omnivision, which makes digital imaging chips, in April.

Photo: Synaptics logo

 

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