You are here
Chipmaker AMS upbeat on outlook, relooks takeover
AUSTRIAN Apple supplier AMS expects a recovery in demand for its optical sensors to continue in the third quarter, and said that it could relaunch a potential takeover of German lighting group Osram.
AMS AG said a week ago that it did not see "sufficient basis" for continuing its discussions with the German technology company, after approaching Osram to discuss a non-binding takeover offer of 38.50 euros (S$58.70) per share, sparking a potential bidding war for the German company.
However, the Swiss-listed sensor specialist said on Tuesday that it had been approached by potential financial partners and had exchanged views "which confirm its belief that AMS can arrange prudent and committed financing for this potential transaction". AMS shares were up around 10 per cent in early trading.
Osram, which is grappling with weakness in the automotive industry and a broader economic slowdown, had sparked bidding interest because of its potential as a supplier for connected and autonomous cars.
AMS aims to expand with super- fast and power-effective laser diodes that are used for light detection and ranging in self-driving cars - so-called VCSELs for automotive Lidar systems.
AMS, which supplies Apple with sensors for its face recognition technology and suffered from lower than expected demand for the latest iPhones late last year, said that demand had continued to recover in the second quarter, with revenues rising to US$415.2 million, in the upper half of its US$390-430 million guidance. It expects third-quarter revenue to reach US$600-640 million. REUTERS