FBR Analyst Weighs In On Lenovo/Marvell Takeover Rumors

Speaking to Benzinga, FBR & Co Analyst Christopher Rolland addressed rumors that Lenovo Group Limited (ADR) LNVGY may make a formal offer for Marvell Technology Group Ltd. MRVL at around $19 per share this weekend.

Rolland said that “there were reports at the beginning of the year out of China” that the Marvell Technology Group mobile division was being “shopped” and his firm communicated this to U.S. investors.

According to Rolland, Marvell would not officially comment on the rumors, but it seemed from the lack of a comment that there was a “willingness to work with the Chinese.”

Rolland said that interest from Lenovo would not surprise him but trying to acquire Marvell, with its significant inside ownership, is a challenge, especially considering that a year ago KKR & Co. KKR took a position in the company.

Rolland’s price target for the company remains “north of $20” and he suggested that a $19 bid could be a starting offer.

Marvell Technology recently traded at $15.51, up 1.54 percent.

Kevin Riley and Brianna Valleskey contributed to this report.