Boise-based Micron is the rumored focus of a takeover offer from a Chinese company.
The Wall Street Journal first reported the possible interest from Tsinghua Unigroup, a Shangai company with ties to the Chinese government.
Dan Gallagher is a writer with the Journal, and has been following the story. He says Micron’s median share price is $29 a share, but the Chinese company is interested in buying it for $21 a share.
"The stock has arguably been undervalued and that tends to draw interest among people who think they can get a good deal," says Gallagher.
Micron hasn't had a good year on the stock exchange, which some analysts say could be attractive to potential buyers. But the business is still a big player in the memory chip market, and a sale would face an uphill battle.
Gallagher says Micron can afford to be more picky if the company is really considering a buyer. But, he says even if Micron shareholders were to OK a sale to Tsinghua, the deal would face some tough questions from the U.S. government.
"Part of the broader agenda here is China has broadcast that it wants to build up a stronger industry in chip making. And not just on memory chips like Micron does, but across all kinds. They want to build up their know-how, their production abilities."
Gallagher says a sale to a Chinese company would prompt concern among American politicians who don't want to see China acquire the technology company.
Micron is one of the biggest employers in Idaho.
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