UPDATE 1-MEMC shares up on takeover chatter
(Changes source, adds analyst comments, details)
By Bijoy Koyitty and Purwa Naveen Raman
BANGALORE, March 25 (Reuters) - Shares of MEMC Electronic Materials Inc WFR.N, which makes silicon wafers for the semiconductor and solar industries, rose as much as 14 percent on speculation that the company received a takeover offer from German chemicals group BASF BASF.DE.
However, analysts said they doubted there was such a proposal and MEMC is not seen as an acquisition target.
"At these price levels, I think the stock is rich, the valuation is high. I think it's primarily a rumour," Hapoalim Securities USA analyst Gordon Johnson said by phone.
MEMC is an attractive target at $10 to $12 from a valuation perspective, Johnson said.
MEMC and BASF were not immediately available for comment when contacted by Reuters.
Shares of the company pared some of their early gains and were trading up 6.3 percent at $17.12 in afternoon trade on the New York Stock Exchange.
"I don't think that MEMC is looked at as an acquisition target because its key end markets are facing significant pressure and I think that any buyer who knows these markets will know that MEMC will reach a lower price later this year," Johnson said. Continua...