Shares of Integrated Device Technology soared midday Tuesday on a Securities and Exchange Commission filing that said a group of Chinese investors proposed a bid for the company at $32 per share.
The proposal represents a 65 percent premium on its Tuesday opening price of $19.39 per share.
Upon further investigation, serious concerns about the legitimacy of the bid arose. Shares of IDTI spiked more than 23 percent on the news but since lost altitude among growing skepticism, closing up 4 percent.
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One strange detail is that one of the investors listed in the filing lists his address as a seemingly empty warehouse in Portland, Oregon.
The original filing disclosed that the investor with the Portland address had purchased "American-style call options referencing 185,000 shares of Common Stock for aggregate consideration of $19,966" on Tuesday.
An amended 13D/A filed later on Tuesday stated that the same investor had sold his "American-style call options referencing 185,000 shares of Common Stock for an aggregate consideration of $447,740." The documents indicate that the investor made more than $400,000 on the trade.
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Integrated Device Technology and the SEC declined to comment on the story.
IDTI intraday April 12
Source: FactSet