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Thursday, August 14, 2014

Chinese group proposes to purchase U.S. chipmaker OmniVision, (NASDAQ: OVTI)

U.S. digital imaging chipmaker OmniVision Technologies Inc said it received a takeover proposal from a group of Chinese investors, including a state-owned firm.The proposed buyout values OmniVision at about $1.7 billion, but would almost certainly face scrutiny from the Committee on Foreign Investment in the United States (CFIUS) if the Santa Clara, California-based company accepts it.Attempts by Chinese firms to purchase U.S. technology companies in the past have faced immense scrutiny, especially due to cybersecurity concerns and fears of transfer of technology that could be used for military purposes."I think any Chinese investment in the U.S. is going to be looked at carefully," said Tim Keeler, a partner at law firm Mayer Brown LLP.

OmniVision Technologies, Inc. (OmniVision) designs, develops and markets integrated and semiconductor image-sensor devices. Shares of OVTI traded higher by 12.93% or $3.181/share to $27.78. In the past year, the shares have traded as low as $13.55 and as high as $24.93. On average, 1187470 shares of OVTI exchange hands on a given day and today's volume is recorded at 9602340.