NEW YORK (TheStreet) - Fairchild Semiconductor (FCS - Get Report ) stock is advancing by 3.27% to $20.67 in mid-morning trading on Wednesday, as the company has received a revised takeover offer.
Under the proposed deal, the unnamed bidder offered to acquire all outstanding Fairchild stock for $21.70 per share, according to a statement. The offer values the chip maker's equity at $2.46 billion.
In November, ON Semiconductor agreed to acquire all outstanding Fairchild stock for $20 per share, and Fairchild's board continues to back this merger deal.
A group headed by China Resources Holdings and Hua Capital Management are reportedly behind the revised deal, according to Bloomberg.
Earlier this month, the same group made an offer to acquire the company at the same $2.46 billion price, which Fairchild rejected, Bloomberg adds. The revised proposal offers to pay the $72 million breakup fee Fairchild would owe ON Semiconductor should it back of their merger agreement.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate FAIRCHILD SEMICONDUCTOR INTL as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.