Design Con 2015
Breaking News
Comments
Newest First | Oldest First | Threaded View
Peter Clarke
User Rank
Blogger
re: KKR said to target Renesas with $1.27 billion bid
Peter Clarke   8/30/2012 12:23:29 PM
NO RATINGS
$1.27 billion is not for all of the outstanding stock in Renesas. It appears that exisiting shareholders would retain some level of ownership. However, it appears that KKR wants to have a majority ownership so that it can take control of the company. More detail is required but KKR may have learned a lesson from the fact that it -- along with others -- paid 6.4 billion euros (about $8 billion) for an 80 percent stake in NXP and then had to write the value down to 10 percent of what they paid.

goafrit
User Rank
Manager
re: KKR said to target Renesas with $1.27 billion bid
goafrit   8/30/2012 1:36:07 AM
NO RATINGS
But the problem is not those flipping the burger but the companies that become mismanaged to invite them to help.

goafrit
User Rank
Manager
re: KKR said to target Renesas with $1.27 billion bid
goafrit   8/30/2012 1:29:39 AM
NO RATINGS
Good to read that our industry is getting a second look again. Facebook with its tanking stock is doing us a favour. The biG VCs are coming back.

eewiz
User Rank
CEO
re: KKR said to target Renesas with $1.27 billion bid
eewiz   8/29/2012 9:42:15 AM
NO RATINGS
1.27B is rather low valuation for a company with 10+B sales. Shouldn't it be higher? If KKR is successful, in turning around Renesas, they can hope to get pretty good ROI for the deal.

Tatsuo Kobayashi
User Rank
Freelancer
re: KKR said to target Renesas with $1.27 billion bid
Tatsuo Kobayashi   8/29/2012 2:14:38 AM
NO RATINGS
Dylan, Question is, what options does Renesas have? Money they have received in the recent bailout is not going to last long. Most of the money will be used in retrenching people. Few months down the line, Renesas will be back asking for money. If something unforeseen strikes like earthquake or global recession, they will be in a deep rut. Banks are afraid of extending loans because they are not sure whether they will ever recover their loans. Parent companies are also not doing too well that they can keep bailing out Renesas forever. In fact, NEC itself is in need of a bailout. It is very clear that Renesas needs to implement some tough measures to survive and become a viable company in a long run. The present Japanese management is too weak for this. They need someone like Mr. Ghosn of Nissan who can see through things and do what is good for the company. In that sense, I am rather hopeful that KKR will be able to bring right set of people in the system and do the needful.

mcgrathdylan
User Rank
Blogger
re: KKR said to target Renesas with $1.27 billion bid
mcgrathdylan   8/29/2012 12:41:40 AM
NO RATINGS
Doesn't history show that this is not a very good idea for anyone involved? NXP and Freescale have been doing well in recent years, but the companies are still saddled with a crushing amount of debt from the leveraged buyouts.



Flash Poll
Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Max Maxfield

Book Review: Deadly Odds by Allen Wyler
Max Maxfield
11 comments
Generally speaking, when it comes to settling down with a good book, I tend to gravitate towards science fiction and science fantasy. Having said this, I do spend a lot of time reading ...

Martin Rowe

No 2014 Punkin Chunkin, What Will You Do?
Martin Rowe
1 Comment
American Thanksgiving is next week, and while some people watch (American) football all day, the real competition on TV has become Punkin Chunkin. But there will be no Punkin Chunkin on TV ...

Rich Quinnell

Making the Grade in Industrial Design
Rich Quinnell
13 comments
As every developer knows, there are the paper specifications for a product design, and then there are the real requirements. The paper specs are dry, bland, and rigidly numeric, making ...

Martin Rowe

Book Review: Controlling Radiated Emissions by Design
Martin Rowe
1 Comment
Controlling Radiated Emissions by Design, Third Edition, by Michel Mardiguian. Contributions by Donald L. Sweeney and Roger Swanberg. List price: $89.99 (e-book), $119 (hardcover).