Cavium Shares Spike After CNBC Mention as Takeover Target
Shares of Cavium (NASDAQ: CAVM) saw an intraday spike on Wednesday after an analyst at Nomura suggested on CNBC that the company could be a takeover target.
In the early afternoon, shares were higher by just about 1.5 percent. Cavium is a semiconductor company involved in the smartphone business.
This isn't the first time Cavium has been seen as a takeover target. In September of 2011, JMP Securities analyst Alex Gauna pointed to Cavium as target in the wake of Broadcom's (NASDAQ: BRCM) deal with NetLogic.
At the Goldman Sachs tech conference earlier in the month, Apple's (NASDAQ: AAPL) CEO Tim Cook talked about what Apple looks for in a takeover. He stressed Apple's desire to add companies that would help it maintain full control over its supply chain.
Still, investors should probably not look to buy Cavium shares just on the hope that the company could be taken over. Many companies have been persistant takeover targets for years, including Range Resources (NYSE: RRC), SunTrust Banks (NYSE: STI) and General Mills (NYSE: GIS), yet none of these companies have been acquired.
Shares of Cavium gave back much of the spike later in the session, but were still trading up over 0.50%.
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