By RNZ

A proposed $391 million takeover bid for semi-conductor maker Rakon has come to nothing.

The company makes specialised chips used in mobile phones, satellites, and computers.

The offer emerged out of the blue last December from what Rakon called a “credible industry player”, with a $1.70 a share offer, which was nearly triple its then trading price.

Rakon’s shares fell nearly 7 percent to 70 cents after the announcement.

Rakon said in May that the deal had stalled over unspecified potential complexities.

Rakon chairperson Lorraine Witten said the board took the view the proposal should be assessed and gave the prospective bidder access to its books and business to do due diligence.

“The parties were unable to reach a suitable resolution to the potential complexities encountered during due diligence.

“While this process is now at an end, the interest shown in our company by this credible party is testament to Rakon’s leading technology, strong business operations and unrelenting commitment to customers.”

She said the outlook for Rakon’s longer-term markets were strong and the opportunities significant, especially in the global space and artificial intelligence sectors.