Freescale takes US$17.6bn bid

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By  Published  September 29, 2006

Freescale Semiconductor, which was spun off from Motorola two years ago, has accepted a US$17.6billion takeover bid from a private equity consortium led by the Blackstone Group in what could be the largest ever leveraged buyout of a technology company.

The agreement contains a provision that allows Freescale, which designs and makes embedded semiconductors, to solicit alternative proposals over the next 50 days, a move which could lead to another company making a higher bid.

However, rival consortium Kohlberg Kravis Roberts has ruled itself out of the bidding process and Freescale is not understood to be involved in any other discussions over a sale.

Subject to no other offer being made, the Blackstone-led deal will be the largest ever leveraged buyout in the technology sector.

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