TPG Capital Said Willing to Pay Up to $15 Per Share to Acquire Cypress (CY) - Source

August 30, 2016 1:59 PM EDT

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Private equity firm TPG Capital is interested in acquiring San Jose-based Cypress Semiconductor (NYSE: CY), according to a source claiming to have knowledge of the matter. The person said the buyout firm indicated that it would be willing to pay up to $15 per share to take Cypress private. The status of takeover discussion wasn't made available.

Cypress has generally been viewed as a likely takeout candidate given consolidation in the semiconductor space. Several months ago, rumors surfaced that Summmitview Capital, a Chinese private equity firm, was interested in the semiconductor manufacturer. A separate report from Betaville suggested that the company was working with Goldman Sachs to gauge interest. The article said a total of three private equity firms expressed interested in Cypress.

On August 11, Cypress named Hassane El-Khoury, an internal candidate, as its new president and CEO. Ray Bingham, the company’s Executive Chairman, said, "The goal of our comprehensive internal and external executive search was to identify a CEO who would drive the transformation of Cypress, expand our leadership position in embedded systems and enhance our focus on revenue and earnings growth and long-term shareholder value."

At the time, some traders speculated that the timing of the CEO change and Bingham’s comments were a sign that the company isn’t near an agreement to be acquired.

Representatives for Cypress Semiconductor declined to comment when asked about the rumors. Representatives for TPG couldn't be reached.

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