|
SAN JOSE, Calif. (AP) - Flextronics International Ltd., the world's No. 2 contract electronics maker, is buying smaller rival Solectron Corp. for $3.6 billion in cash and stock, in a takeover that analysts say is fueled by fierce global competition that is driving down prices and squeezing already razor-thin profit margins.
Singapore-based Flextronics said Monday that Solectron investors will have two options for converting their shares, either a cash payment of $3.89 per share, a 15 percent premium over Friday's closing price of $3.37 on the New York Stock Exchange, or 0.3450 shares of Flextronics for each Solectron share, which is a 20 percent premium.
No less than 50 percent and no more than 70 percent of Solectron's stock will be converted into Flextronics stock, the companies said in a joint statement before the markets opened.
|