Tundra announced Monday that it received an unsolicited, $6.25-a-share offer from Integrated Device Technology , a San Jose, California-based semiconductor company.
The board at Tundra says this is bid is 'superior' to a friendly cash and share offer struck earlier this month with Gennum Corp. , a merger that would have created a larger domestic company. Gennum is based in Burlington, Ont. while Tundra is headquartered in Ottawa.
Gennum now has five days to weigh its options. There are already predictions that with two bidders now in the game, the valuation on Tundra could rise.
"We continue to believe the price proposed by IDT undervalues Tundra," said a report Monday from BMO Nesbitt Burns analyst Brian Piccioni. He has a $9 target price on Tundra stock.
IDT's bid values Tundra at $121-million, while the Gennum offer is worth $112-million.