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Freescale Agrees to Be Acquired by Blackstone Group LP for USD 17.6 Billion

Freescale Semiconductor has agreed to a takeover by private-equity firms led by Blackstone Group LP for USD 17.6 billion. Blackstone, whose USD 15.6 billion-buyout fund is the world's largest, along with Texas Pacific Group of Fort Worth, Texas, Washington-based Carlyle Group and Permira Advisers LLP in London topped a rival bid by Kohlberg Kravis Roberts & Co. and other firms.

"We might get a competing bid in here that could push the number even a little higher,'' said Doug Freedman, an analyst at American Technology Research in San Francisco, who has rated the shares 'buy' since Sept. 12. "The company has a longer-term acquisition strategy that is probably better executed in private, rather than the public forum, where you have everyone concerned about quarterly results.''

Freescale shares rose USD 2.42, or 6.5 percent, to USD 39.58 in New York after the official close of US exchanges. The stock closed at USD 37.16, down 41 cents, in regular New York Stock Exchange composite trading.


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