Monday, November 11, 2013

Marvell Technology Group (NASDAQ: MRVL) Could Rocket Higher on a Possible Buyout

Bermuda-based semiconductor company Marvell Technology Group (NASDAQ: MRVL) staged a promising breakout move on Tuesday, Nov. 5, on the back of the announcement that private equity firm Kohlberg Kravis Roberts & Co. (NYSE: KKR) acquired a nearly 5% stake in the chipmaker.
Before the news was released, based on Marvell's market cap at Monday's close, a 5% stake in the company would have cost about $296 million. One source, who asked not to be identified, said KKR views MRVL as undervalued and had conversations with the firm's CEO, Sehat Sutardja.
The involvement of KKR, a firm that is known for its successful leveraged buyouts, now also makes such a move a possibility with MRVL. Other major holders of the stock are the CEO and his brother, with a combined 20% stake, and David Einhorn's Greenlight Capital, which owns 9%.  (more)

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