German chipmaker Infineon looked at a "whole bunch" of possible acquisition targets before settling on International Rectifier, for which it announced a bid this week, Infineon's finance chief said. "We approached another (target) but did not converge on price. And for others we did not want to pay the high premiums," Dominik Asam told analysts during a conference call on Thursday.Infineon said on Wednesday it had agreed to purchase International Rectifier for about $3 billion in cash, at a 48 percent premium over the California-based firm's three-month average share price."We got comfortable with that (premium) only because we know how we can get to the profitability that will warrant that kind of a premium," Asam said.
International Rectifier Corporation (IR) designs, manufactures and markets power management semiconductors. Shares of IRF traded higher by 47.21% or $12.54/share to $39.10. In the past year, the shares have traded as low as $22.78 and as high as $39.50. On average, 929931 shares of IRF exchange hands on a given day and today's volume is recorded at 31558464.
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