2023-07-26 15:30:57 ET
- MaxLinear ( NASDAQ: MXL ) said it has exercised its contractual rights to terminate its planned purchase of Silicon Motion ( NASDAQ: SIMO ). MaxLinear and Silicon Motion shares have been halted.
- MaxLinear said it gave notice that it is relieved of its obligation to close the transaction because certain conditions to the closing haven't been met, Silicon Motion suffered a "material adverse effect," and SIMO is in material breach of representations, warranties, covenants, and agreements in the merger agreement, according to a statement on Wednesday.
- The termination announcement comes after Silicon Motion ( SIMO ) shares soared over 80% on Wednesd ay on news that China had approved the transaction. MaxLinear shares tumbled 20%.
- Developing story ..
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MaxLinear plans to terminate its acquistion of Silicon Motion