Chipmaker Synaptics rejects Chinese firm’s offer: Bloomberg

Touchscreen chip maker Synaptics Inc rejected an offer from a Chinese investment group valuing the company at nearly $4 billion, Bloomberg reported on Wednesday.

The Chinese state-backed group bid $110 per share for Synaptics, Bloomberg reported, citing people familiar with the matter.

The offer price is a near 70 percent premium to Synaptics’ Tuesday close.

The company’s shares rose as much as 26 percent to $81.86 on Wednesday.

Synaptics is not interested in selling at that level, one person told Bloomberg, and added that Synaptics might be holding out for a bid as high as $125 per share.

A $125 per share bid would value Synaptics at $4.5 billion, based on the company’s outstanding shares on Aug. 14.

The Bloomberg report did not name the Chinese company.

A Synaptics spokesman declined to comment.

Earlier on Wednesday, U.S. data storage company Western Digital Corp said a unit of Tsinghua Holdings Co Ltd would buy a 15 percent stake in the company for $3.78 billion.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Kirti Pandey)