There's nothing like a takeover rumor to inflate the price of a stock. That dynamic was in play on Monday, with solid-state chip-component maker Silicon Motion Technology 's (NASDAQ: SIMO) American depositary receipts (ADRs) blasting nearly 13% higher on scuttlebutt of a potential buyout.
In an article published Sunday afternoon and citing "people familiar with the matter," Bloomberg said Silicon Motion is currently exploring a possible sale. It is holding talks with several potential acquirers and is working with advisors to assist with the decision.
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Why Silicon Motion Stock Zoomed 13% Higher Today