Filtronic Shares Surge on Powerwave Unit Sale Talks

Shares of Filtronic Plc (FTC) had their biggest gain in more than 1 1/2 years, after the U.K. maker of semiconductors and mobile-phone antennas said it was in talks with Powerwave Technologies Inc. (PWAV) about selling two units.

The shares rose 29.5 pence, or 17 percent, to close at 206.5 pence in London, the largest increase since Aug 9, 2004. Still, the stock has dropped 21 percent this year, reducing the company's market value to 153.4 million pounds ($285 million).

Filtronic is in exclusive negotiations to sell its filter- based transmit receive module and power amplifier businesses, the Shipley, northeast England-based company said in a Regulatory News Service statement today. There is ``no certainty'' that the negotiations will result in a transaction, it said.

Santa Ana, California-based Powerwave Technologies is a maker of wireless communications products. The company's shares have fallen 4.1 percent this year, valuing Powerwave at $1.35 billion.

The two units Filtronic is discussing with Powerwave are in its wireless infrastructure division, which accounted for 80 percent of the company's 110.8 million pounds of sales last year.

Shares of Filtronic suffered their biggest-ever drop on Jan. 30 after Chief Executive Officer John Roulson resigned and the company reported a first-half loss of 4.24 million pounds, compared with a year-earlier profit of 1.84 million pounds.

To contact the reporter on this story: Sarah Das in London at sdas4@bloomberg.net

To contact the editor responsible for this story: Chris Collins in London at collinsc@bloomberg.net

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