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What: Shares of semiconductor designer Conexant Systems
So what: There could be a showdown a-brewin' for Conexant. Yesterday, the company received a buyout offer from Golden Gate Private Equity that valued the company's shares in a range of $2.35 to $2.45. That got shareholders' attention since last month Standard Microsystems
Now what: As of this writing, Conexant shares were trading at $2.46, a penny above the upper end of Golden Gate's valuation range. That suggests that investors are pretty confident that that higher bid from SMSC will come in. Current Conexant shareholders probably don't have much to lose by sticking around to see how this plays out, but investors on the sidelines may want to be very careful speculating on a bidding war.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.