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Texas Instruments in talks to buy Maxim Integrated: Bloomberg

Texas Instruments Inc (TXN.O) is in talks to buy Maxim Integrated Products Inc (MXIM.O), Bloomberg reported, as chipmakers seek deals to cut costs and expand offerings.

Maxim has also received interest from Analog Devices Inc (ADI.O) and may not be willing to sell unless it gets a very high premium, Bloomberg said, citing people with knowledge of the matter. (bloom.bg/1iitkP8)

Shares of Maxim, which had a market value of $10.9 billion as of Tuesday, were up 5.3 percent at $40.50 in afternoon trading on Wednesday.

A Texas Instruments spokeswoman said the company had a policy of not commenting on rumors or competitor activity. Maxim and Analog Devices could not be reached immediately.

Maxim has been working with a bank on a strategic review, Bloomberg reported earlier this month.

Among other big deals in the sector this year, Avago Technologies Ltd (AVGO.O) said it would buy Broadcom Corp (BRCM.O) for $37 billion and Intel Corp (INTC.O) agreed to buy Altera Corp (ALTR.O) for $16.7 billion.

Maxim also may be reluctant to sell because it does not need scale as much as smaller rivals that have agreed to be bought this year, such as Atmel Corp (ATML.O) and PMC-Sierra Inc (PMCS.O), Bloomberg cited one of the people as saying.

Texas Instrument shares were down 0.3 percent at $57.83. Analog Devices was up 0.3 percent at $61.60.