InterDigital Plunges on Report of Weak Offers

Monday, 26 Sep 2011 05:21 PM

 

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InterDigital Inc., a technology company considering takeover offers, plunged 14 percent Monday on the Nasdaq Stock Market after a report said bidders are offering $1 billion to $2 billion -- less than investors had expected.

“A large Asian mobile device company” has made a bid, DealReporter said, citing an unnamed source familiar with the matter. A price of less than $2 billion would come in below InterDigital’s market value, which was $2.6 billion at the end of last week. It has now fallen to $2.3 billion.

The company, which owns about 1,300 patents related to mobile-phone technology, has said its intellectual property is more valuable than the patents auctioned off by Nortel Networks Corp. earlier this year. A group led by Apple Inc. and Microsoft Corp. agreed to buy that technology for $4.5 billion in July. Later that month, InterDigital hired Evercore Partners Inc. and Barclays Capital to review its options.

InterDigital fell $8.27 to $49.54 at 4 p.m. New York time, marking the biggest decline in almost two years. The drop pared the stock’s gain this year to 19 percent.

Jack Indekeu, a spokesman for King of Prussia, Pennsylvania-based InterDigital, didn’t respond to requests for comment.

© Copyright 2014 Bloomberg News. All rights reserved.

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