NEW YORK (MarketWatch) — Shares of International Rectifier
soared 47% to a seven-year high in midday trade Wednesday, after the maker of power-management products announced an agreement to be acquired by Germany’s Infineon Technologies in a deal valued at about $3 billion. As part of the buyout agreement, Infineon will pay $40 for each International Rectifier share. The target company said it was discontinuing its share buyback program. Earlier, Bloomberg News had reported that Infineon was nearing a deal to buy a U.S.-based semiconductor maker for $2 billion. Separately, International Rectifier reported fiscal fourth-quarter adjusted earnings per share of 30 cents, up from 27 cents in the year-earlier period, and above the FactSet consensus EPS estimate of 24 cents. Sales rose 10.5% from last year to $297.6 million, topping expectations of $288.6 million. At just above $39, the stock was trading at the highest level seen since July 2007.
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