Fairchild Semiconductor's Stock Jumped Higher On Tuesday: Here's Why

Shares of Fairchild Semiconductor Intl Inc FCS were trading higher by nearly 4 percent Tuesday morning. Fairchild Semiconductor entered into a merger agreement with ON Semiconductor Corp ON back in November. Bloomberg reported that Fairchild has now received a takeover proposal from a consortium led by China Resources Holdings which is "superior" to ON Semiconductor's bid of $21.70 per share. The publication, citing an analyst at FBR & Co., noted that there is a "meaningful probability" that ON Semiconductor could raise its bid to $22 per share "and perhaps higher" to counter China Resources' bid.