Is Tower Semiconductor Stock a Buy Ahead of an Intel Acquisition Announcement?
Intel (NASDAQ: INTC) announced its intention to acquire small Israeli chip foundry Tower Semiconductor (NASDAQ: TSEM) all the way back in February 2022. The deal, awaiting regulatory approval from China's State Administration for Market Regulation (SAMR), is delayed but had been expected to close by June 2023.
Here we are in earnings season in August, sifting through individual Tower and Intel financial updates. Is fab outfit Tower a buy ahead of some sort of final acquisition announcement?
Let's start with the Intel offer to acquire Tower. Intel's proposal from nearly 18 months ago still stands at $54 a share in cash, valuing Tower at approximately $5.4 billion (when subtracting cash net of debt). As of this writing, Tower stock trades for under $38 a share. Should SAMR sign off on Intel's takeover, Tower shareholders would score a quick 40%-plus gain.
Source Fool.com
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