Mergers and Acquisitions Roundup: STMicroelectronics Spinoff Contradiction, Zynga Might Go Private
Shares of Ultimate Software Group (NASDAQ:ULTI) and Saba Software (NASDAQ:SABA) moved up Friday in tandem, following the impressive IPO of their cloud human resources peer, Workday. Both companies get occasional merger or acquisition chatter and the former might also be getting tailwind from ThinkEquity’s starting its coverage with a Buy and a price target of $116.
Friday is seeing contradicting news concerning STMicroelectronics (NYSE:STM), which was said earlier in a Bloomberg report to be thinking of breaking itself up. It was rumored that the firm’s analog chip unit could be split from its digital chip division, which is heavily exposed to the soft TV and set-top box markets, and that the mobile baseband chip joint venture ST-Ericsson, which was said this week to be exploring “strategic options,” might be sold. The conjecture also had Samsung (SSNLF.PK), which has been boosting its mobile chip exposure, named as a potential suitor for ST-Ericsson. However, STMicroelectronics quickly released a short statement through which it “denies the existence of initiatives which can compromise the unity of the Company.”
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Chatter is circulating that Mark Pincus may be thinking of taking Zynga (NASDAQ:ZNGA) private, as the chief executive re-tweeted a comment connected to an analysis which contends that his company should consider such a move. As it now stands, Pincus controls 50.15 percent of Zynga’s voting rights and is thus positioned to make a going-private bid should he so desire.