Micron Technology up in premarket on reports of possible buyout offer

MarketsAssociated Press

Micron Technology's stock climbed nearly percent in Tuesday premarket trading on reports that China's Tsinghua Unigroup Ltd. is readying a $23 billion bid for the chip maker.

Some media reports said that Tsinghua would bid $21 per Micron share, and that an offer could come this week.

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It would be China's largest takeover of an American company.

Srini Sundararajan of Summit Research said in a client not that the $21 per share offer seems like a low bid that will likely go higher. The analyst said that there could be antitrust concerns from the U.S. or South Korea, but "if the price is right, antitrust concerns can be dealt with successfully."

Jefferies' Sundeep Bajikar said Tsinghua is interested in Micron for its dynamic random access memory (DRAM) and 3D NAND technologies. Like Sundararajan, Bajikar believes that Tsinghua's $21 per share offer is too low and could face counteroffers.

Shares of Micron Technology Inc. gained $2.24 to $19.85 before the market open.