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Why Is Infineon Paying a Premium for Cypress?

Sneha Nahata
Why Is Infineon Paying a Premium for Cypress?

Cypress Semiconductor (CY) has recently agreed on a buyout offer from German chip maker Infineon Technologies. Infineon is paying $23.85 per share, a nearly 50% premium, to Cypress's shareholders—a price considered too high for the expected synergies by some analysts.