UPDATE: Benchmark Downgrades MIPS Technologies to Hold on Lack of Catalysts From Transaction
Benchmark lowered its rating on MIPS Technologies (NASDAQ: MIPS) from Buy to Hold.
Benchmark noted, "Early this morning, it was announced that: 1) MIPS will sell 498 patents to AST (a.k.a. Bridge Crossing) for $350 million, 2) Imagination Tech will buy the remaining 82 MIPS patents and MIPS operating business (licensable design IP) for $60 million and 3) MIPS shareholder will be paid $7.31/share in net proceeds in 1Q13 through a recapitalization of MIPS common stock. Because this transaction has been in the works for 18 months, we doubt a higher bid will come along, and accordingly, we are downgrading our rating from Buy to Hold.
MIPS Technologies closed at $7.02 on Monday.
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