Silicon Motion may see a bidding war after MaxLinear deal, analysts say
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Silicon Motion (NASDAQ:SIMO) could see bidding war after MaxLinear (NASDAQ:MXL) agreed to acquire the company for more $114/share in cash and stock, according to Craig-Hallum. SIMO shares jumped 17.5% on the deal news.
Silicon Motion (SIMO) could be an attractive acquisition target for several suitors, according to Craig-Hallum analyst Anthony Stoss. He believes a bidding war may bring the takeout price closer to $120/share.
"Breakup fees are not overly aggressive either, which could make follow-on bids from other interested parties a higher likelihood," Stoss, who has a buy rating and $120 price target on Silicon Motion (SIMO), wrote in a note.
The comments come as MaxLinear (MXL) shares plunged 21% on the deal announcement, an indication that holders are not pleased with the deal and MXL also was downgraded by Northland. 
One rival bidder could be MediaTek (OTCPK:MDTKF) after Bloomberg late Wednesday reported that the company was also considering an offer for Silicon Motion. 
Wedbush analyst Matt Bryson on Thursday also said he sees the potential for alternative bidder for Silicon Motion (SIMO). 
"While we like SIMO and believe the purchase price was fair, we struggle with some of the synergy goals and opportunities laid out by MXL management," Bryson, who has an outperform and $115 price target on SIMO, wrote in a note.
"A significant discount exists between SIMO's valuation and the proposed transaction price despite what we see as modest regulatory risk," Bryson added. 
Other potential suitors for SIMO include MediaTek, Marvell (MRVL) Broadcom (AVGO) and Microchip (MCHP), Bryson reiterated after similar comments last month.