Tower Semiconductor drops amid Dupont's termination of Rogers deal
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Tower Semiconductor (NASDAQ:TSEM), which agreed to be sold to Intel (NASDAQ:INTC) in February, fell 3.6% amid investor concern about China approval for deals after Dupont (DD) on Tuesday terminated its $5.2 billion acquisition of Rogers Corp. (ROG).
Rogers (ROG) plunged 44% after Dupont walked away from the deal after the parties failed to obtain timely regulatory clearance. Dupont and Rogers had until Tuesday to decide if either planned to walk away from the deal as China's antitrust review of the deal dragged on for months
Dupont (DD) said in a statement that it was unable to obtain "timely" regulatory clearance, though Roger's business appeared to deteriorate since the deal was announced a year ago, analysts said. 
The original deal reflected Roger's (ROG) expected EBITA of $270 million for 2022, but Roger' s 1H EBITDA of $93 million, implied a full year EBITDA of $185 million, according to BofA analyst Steve Byrne, who has a buy rating on Dupont (DD).
Buying Rogers "ROG was a way to increase scale in a target market through a complementary portfolio of businesses," Byrne wrote in a note on Tuesday. "That said, throwing good money after bad to chase earnings isnât an ideal strategy either."
Recall in August, Dealreporter said China reportedly hasn't started its review of Intel's planned purchase of Tower Semi.
Intel (INTC) agreed to acquire Israel-based Tower Semi (TSEM) for $53 per share in cash in February.