Why Intersil Corp. Stock Soared Today

By Markets Fool.com

Image source: Intersil Corp.

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What:Shares of Intersil Corp (NASDAQ: ISIL) were up 19.9% as of 12:30 p.m. Monday following reports that Japan's Renasas Electronics Group is interested in acquiring the U.S.-based semiconductor specialist.

So what: Specifically, Reuters cited an unnamed "industry source familiar with the deal" as stating Renasas "is in the final stages of negotiations to acquire [Intersil] for as much as 300 million yen," or just under $3 billion.

Now what: Today's pop brings Intersil's market capitalization to around $2.6 billion as of this writing, leaving around 15% upside for investors willing to stick around with the hope Intersil is able to make the most of the reported negotiations. With shares already up nearly 50% year to date, however, and keeping in mind nothing is finalized yet, I think Intersil investors would be wise to take at least some of their chips off the table today.

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Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.