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Renesas to buy IDT for $49 per share & FIT updates +6
The 8-K filed by IDT
provides a few more relevant details, with the main one being that
if either company fails to execute the terms of the merger, it
owes the other a $166.4M break-up fee. The initial deadline is
June 10, 2019, but that is subject to two 3-month extensions, if
required for regulatory approval.
As expected, Renesas has announced an agreement to buy Integrated Device Technology for $49 per share. Closing of the transaction is expected to occur in the first half of 2019, following approvals by IDT shareholders and the relevant regulatory authorities.
That last phrase represents the main danger in holding IDTI shares going forward. Nonetheless, I expect to see trading in them gravitate toward the high forties over the pre-market session, which starts in a few minutes. We haven't seen confirmation from IDT's side yet, but my opinion is that this is best for the company and its shareholders, especially in light of competition and consolidation in the chip space. Let those links stand as follow-up to everything I've already said about Fitbit. For IDT, it's always possible that competing offers could emerge, but increased attention brings increased risk. Thus, I think both parties will do everything they can to have this deal go through.
Assuming that happens, the IDTI section of the website will eventually go public, but there is no hurry on that. It will continue to be updated, and perhaps we will get an INVN-style pre-closing opportunity. In fact, the CQH section has been reverted to private for now.