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Wednesday, August 20, 2014

RPT-Infineon to purchase International Rectifier for $3 billion in cash, (NYSE: IRF)

German chipmaker Infineon announced on Wednesday that it had agreed to purchase U.S.-based International Rectifier for about $3 billion in cash.The Munich-based group said the purchase price of $40 per share represented a 48 percent premium over the average share price of International Rectifier over the past three months and of 51 percent over Tuesday's closing share price.Infineon said it would fund the transaction using cash on hand and fully underwritten credit facilities totalling 1.5 billion euros ($2.0 billion).A person close to the negotiations had told Reuters earlier that Infineon was poised to strike a deal to buy a U.S. chipmaker.

International Rectifier Corporation (IR) designs, manufactures and markets power management semiconductors. Shares of IRF traded higher by 47.4% or $12.59/share to $39.15. In the past year, the shares have traded as low as $22.78 and as high as $28.99. On average, 442451 shares of IRF exchange hands on a given day and today's volume is recorded at 3627961.