Dialog Semiconductor (DLG.DE) stock surged 17% after the company agreed to be taken over by Japan's Renesas Electronics for €4.9 billion in cash. Renesas, one of the world's biggest auto chip makers, has offered 67.50 euros a share for Dialog, representing a 20% premium to Friday's closing price and a 52% premium to a weighted three-month average. Dialog is an American founded UK-Domiciled manufacturer of semiconductor based system solutions however its stock is listed in Frankfurt. Since 2007, Dialog has been the exclusive supplier of power management integrated circuits (PMICs) for Apple, which comprised 74% of the company's sales in 2016. Renesas, which has around a 30% global market share for microcontrollers used in cars, has been looking for ways to increase its share of analog chips used to process signals for things such as sound, light and temperature.
Dialog Semiconductor (DLG.DE) stock launched today's session with a massive bullish price gap. If the current sentiment prevails, upward movement could be extended to the €68.40 handle or even to €76.32 level, where all-time highs are located. On the other hand, if sellers will manage to halt declines, then nearest support to watch lies at €57.71. Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
