Infinera, a semiconductor maker serving the telecommunications industry that competes with China’s Huawei, is exploring options including a sale of the company, Reuters reported, citing people familiar with the matter.
at headquartersCaliforniaCompeting San Jose’s Infinera with a market cap of about $1.6 billioninvestThe bank, Centerview Partners, will begin the sale process in a few weeks. After the news, Infinerashare priceIt jumped 11% in response Tuesday afternoon, and later gained 7.74%, closing at $7.38. Whether Infinera can close the deal is uncertain.
Oaktree Capital Management sold its equipment maker Coriant to Infinera in 2018 for $430 million in cash and stock and currently holds a seat on Infinera’s board of directors.
Infinera manufactures fiber optic semiconductors and networking equipment for fixed and mobile telecommunications networks. Shares of the company have declined 15% over the past 12 months, which is almost double the industry’s average decline.
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