LSI Stock Price Explodes After Avago Buyout

by Karl Utermohlen | December 16, 2013 2:15 pm

LSI Stock Price Explodes After Avago Buyout

LSI (LSI[1]) is about to be sold to Avago Technologies (AVGO[2]) for a whopping $6.6 billion in cash.

avgo LSI Stock Price Explodes After Avago BuyoutThe LSI stock price has skyrocketed since the announcement with shares up 38.69% as of early Monday afternoon. Avago is financing the deal with help from Silver Lake[3] (SVLFK[4]), which used to own the semiconductor company and has a seat on the company’s board despite selling the last of its holdings in 2012.

LSI — which develops storage and network semiconductors — will help Avago grow financially with analysts projecting $200 million in annual cost savings beginning in the first full year after closing.

Avago will pay $11.15 a share for LSI stock. That is slightly higher than the current $10.97 LSI stock price. The semiconductor company has several high-profile clients including Samsung (SSNLF[5]) Cisco (CSCO[6]) and Hewlett-Packard (HPQ[7]).

Endnotes:
  1. LSI: http://studio-5.financialcontent.com/investplace/quote?Symbol=LSI
  2. AVGO: http://studio-5.financialcontent.com/investplace/quote?Symbol=AVGO
  3. Avago is financing the deal with help from Silver Lake: http://dealbook.nytimes.com/2013/12/16/avago-to-buy-lsi-for-6-6-billion/?_r=1&
  4. SVLFK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SVLFK
  5. SSNLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSNLF
  6. CSCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSCO
  7. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ

Source URL: http://investorplace.com/2013/12/lsi-lsi-stock-price-lsi-stock/
Short URL: http://invstplc.com/1fpWoi0