Takeover talk saw British tech innovator CSR (LON:CSR) move some 30% higher on Wednesday morning.
Via a recommended offer Qualcomm, an American semi-conductor firm, will pay £1.56bn (US$2.5bn) for the British blue-tooth pioneer and chipmaker.
If it goes through investors will get 900p per share paid in cash.
Analysts at City broker Liberum called it a “good price” for the British company which was the subject of a bid from Microchip Technology Inc in August.
The broker expects the deal to go through. “Don't expect a counter offer as CSR has been shopped for the last month,” it said in a note.
Trading at 859p the London listed share this morning remained a little shy of Qualcomm’s offer price.
While this Anglo-American tech takeover comes together another transatlantic tie-up appears to be losing its connection.
Shares in drugs giant Shire (LON:SHP) tumbled in early trade after suitor AbbVie (NYSE:ABBV) said it is to reconsider the US$55bn its takeover bid following the American crackdown on tax inversion.
This swap of domicile from the US to Britain to enjoy the lower tax regime offered on this side of the Atlantic was at the heart of the deal – this and the obvious synergies and cost savings of creating one of the world’s largest pharma companies
AbbVie told shareholders overnight that it is looking again at whether it should press ahead with the takeover, which was recommended by the board of the London-listed group in July.
Shire shares fell £12.80 per share, 25%, to trade at £38.60
The big pharma faller had the FTSE 100 on a downer – with the blue chip share index giving back the week’s prior gains in this morning’s session.
Falling about 70 points to trade at 6,322 the benchmark was down 1.1%.
Travel group’s TUI (LON:TT.) and Carnival (LON:CCL) were among those still moving higher, rising 2.3% and 1.6%.
While the other notable FTSE climbers included Royal Mail (LON:RMG), up 2.3%, Morrison (LON:MRW) and Burberry (LON:BRBY).
In the small cap sector, shares in Roxi Petroleum (LON:RXP) fell over 20% as it revealed that oil has flowed from the A5 discovery well only for short periods, due to issues relating to pressure. These short periods were insufficient to obtain a reliable measurement to quantify possible oil flows, it added.
The company said it is now preparing for “all important” flow testing, and this work continues as planned.
Oil recovered so far has been described by Roxi as “good quality light oil” with is brown in colour with a blue hue, without hydrogen sulphide.
Moving in the other direction Arian Silver (LON:AGQ) advancing as much as 25% in early days after the junior miner unveiled a wide-ranging $32mln financing package, which should see it through to full-scale commercial production at the San Jose project.
This pivotal moment for the mining firm will enable it to accelerate the mine's development towards its aim of becoming a producing silver and lead/zinc operation at up to 1,500 tonnes per day, it said.
Gold explorer Orogen (LON:ORE), tech group WANdisco (LON:WAND) and oil firm New World (LON:NEW) were among Wednesday’s other climbers – rising 25%, 16% and 13% respectively.