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: xStation5
