Shares of Cypress-based Universal Electronics Inc., a maker of remote controls for home electronics, jumped Friday after the company said it made a bid to buy San Jose-based chipmaker Zilog Inc.
Wall Street seemed to take to the idea.
Universal Electronics’ stock rose more than 4% on a recent market value of about $342 million.
Chief Executive Paul Arling sent an unsolicited letter to Zilog Chairman Federico Faggin with details of the buyout offer a week ago, but didn’t disclose it until today.
Universal Electronics said it’s set to offer $4.50 a share for Zilog, for a total of about $76 million. The offer is about 70% more than what Zilog’s shares closed at on Thursday.
Zilog says its board will now “consider alternative courses of action,” including the Universal offer and implementing the company’s current business plan, “which is designed to significantly enhance shareholder value.”
Zilog, which got its start in 1974, said in a statement Friday that its board of directors is considering the proposal.
Its shares soared more than 22% on a market value of roughly $55 million.
