Microsemi (MSCC) Could See an Active Bidding War in Sale - Source

After fielding takeover interest in late-2016, Microsemi (NASDAQ: MSCC) is back in play and has hired bankers at Qatalyst Partners to review options, according to a source.

The last time around, Skyworks (Nasdaq: SWKS) was interested in buying. This time around, at least one party has already approached with a preliminary offer and several others could be ready to step up with bids. The company is also said to be open to selling ---- at the right price.

Today, amid the new round of chatter, analysts crunched the numbers and came up with a potential takeover price of $70-$75 per share.

Needham & Company N. Quinn Bolton believes the most likely price is $70 based on the vesting schedule of CEO Jim Peterson's performance-based stock units.

Meanwhile, Susquhanna's Christopher Rolland believes a $75 takeout price, or a 25% premium to initial deal headlines, is reasonable, representing ~20x 2018E EPS.

The list of potential suitors is extensive, which could extend the sales process but also ultimately reveal the highest price.

Potential suitors include Maxim (NASDAQ: MXIM), Xilinx (NASDAQ: XLNX), Skyworks (NASDAQ: SWKS), Qualcomm/NXP (NASDAQ: QCOM)/(NASDAQ: NXPI), Renesas, Infineon, STMicroelectronics (NYSE: STM), Microchip (NASDAQ: MCHP), Texas Instruments (NYSE: TXN) and Analog Devices, Inc. (Nasdaq: ADI).

DealReporter first broke the news of the potential sale Tuesday afternoon.

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