Stock Alert: Cypress Semiconductor Down 14% On Threat To Takeover Deal

(RTTNews) - Shares of Cypress Semiconductor Corporation (CY) are currently losing nearly 14% after reports that the Trump administration may block the semiconductor maker's $8.7- billion takeover by Infineon Technologies AG (IFNNY).

Last June, Infineon Technologies had agreed to buy Cypress Semiconductors for $23.85 per share in cash.

According to Bloomberg, the acquisition is facing concerns from the Committee on Foreign Investment in the United States (CFIUS). CFIUS officials fear that Infineon's takeover of the chipmaker poses a risk to national security.

CFIUS reviews foreign takeovers of U.S. businesses. The panel is particularly sensitive to any deal that allows Chinese buyers to get their hands on advanced U.S. technology.

San Jose, California-based Cypress designs and manufactures semiconductor products for the defense industry. Infineon, based in Neubiberg, Germany, generates a major part of its sales from China.

CY is currently trading at $16.43, down $2.75 or 14.34%, on the Nasdaq.