(MENAFN- AFP) Shares in Japanese mobile giant SoftBank dropped more than 10 percent in early trading Tuesday after it agreed to take over British chip designer ARM Holdings.
About 20 minutes into trading in Tokyo, Softbank shares were down 10.19 percent at 5,398.0 yen after falling as low as 5,361 yen. The purchase deal, announced Monday, is worth around £24.3 billion ($32 billion, 29 billion euros).
The all-cash deal was unanimously backed by ARM management, the two companies said in a statement.
Conservative British Prime Minister Theresa May declared that the record Asian investment proved "Britain is open for business", just three weeks after citizens voted to leave the European Union.
Analysts said the vast weakening of the pound, in particular against the dollar, since the referendum result is making British companies attractive for foreign groups.
SoftBank meanwhile said it would offer £17 for each ARM share, a premium of around 43 percent compared with Friday's closing price of £11.89.
That sent ARM's share price rocketing by about 41 percent on Monday in London.
ARM develops and licenses technology central to digital electronic devices, including those made for Apple and its fierce rival Samsung.<
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