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Spreadtrum Gets Buyout Offer Worth About $1.39B

Smartphone chip maker Spreadtrum Communications is considering a preliminary acquisition offer valued at about $1.39 billion from Tsinghua Holdings Co. Ltd. The Chinese company says Tsinghua outlined in a letter dated Thursday an offer that amounts to $28.50 per American depositary share.

Smartphone chip maker Spreadtrum Communications is considering a preliminary acquisition offer valued at about $1.39 billion from Tsinghua Holdings Co. Ltd.

The Chinese company says Tsinghua outlined in a letter dated Thursday an offer that amounts to $28.50 per American depositary share. That represents a premium of 20 percent over Wednesday's closing price of $23.73 for the U.S.-traded shares.

Spreadtrum Communications Inc. says its board is reviewing the proposal and has not made any decisions.

Tsinghua Holdings is a state-owned corporation funded by China's Tsinghua University.

Spreadtrum shares are up 24 percent, or $5.31, to $27.60 in premarket trading Friday.

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