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
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Engineer's Bookshelf
Caleb Kraft

The Martian: A Delightful Exploration of Math, Mars & Feces
Caleb Kraft
6 comments
To say that Andy Weir's The Martian is an exploration of math, Mars, and feces is a slight simplification. I doubt that the author would have any complaints, though.

The Engineering Life - Around the Web
Caleb Kraft

Surprise TOQ Teardown at EELive!
Caleb Kraft
Post a comment
This year, for EELive! I had a little surprise that I was quite eager to share. Qualcomm had given us a TOQ smart watch in order to award someone a prize. We were given complete freedom to ...

Design Contests & Competitions
Caleb Kraft

Join The Balancing Act With April's Caption Contest
Caleb Kraft
58 comments
Sometimes it can feel like you're really performing in the big tent when presenting your hardware. This month's caption contest exemplifies this wonderfully.

Engineering Investigations
Caleb Kraft

Frankenstein's Fix: The Winners Announced!
Caleb Kraft
8 comments
The Frankenstein's Fix contest for the Tektronix Scope has finally officially come to an end. We had an incredibly amusing live chat earlier today to announce the winners. However, we ...

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)