Freescale chips get a $16-bn bite

NEW YORK: A consortium of investment firms was near a deal to acquire Freescale Semiconductor Inc for more than $16 bn, The New York Times reported on Monday.

Citing people briefed on the negotiations, the newspaper said the deal, if completed, would be the largest leveraged buyout ever in the technology sector.

Freescale, based in Austin, Texas, makes chips used in wireless communications, computer networking and the auto sector.

Texas Pacific already has a stake in Freescale. The consortium includes Texas Pacific Group, Blackstone Group and Permira, the paper said, adding it was possible Carlyle Group and Bain Capital could join the group.

Blackstone declined to comment. Neither Freescale nor the other investment firms were immediately available for comment.

The newspaper said Kohlberg Kravis Roberts and Silver Lake Partners submitted a late offer for Freescale, but that the bid may have been too low and too late.