Freescale bought for $17.6bn

Chipmaker Freescale is to be bought out by a private equity consortium for a total of $17.6bn - but it's keeping its options open.

The Blackstone Group is leading the consortium, which includes Permira Funds, Texas Pacific Group and The Carlyle Group, and is offering shareholders $40 per share. Freescale's board has already recommended shareholders accept the deal.

Despite the cash on the table, the deal is not entirely sealed for Freescale. Under the terms of the agreement, Freescale has the next 50 days to assess any rival bids that may come in, under the proviso that should it turn its back, it will need to pay the private equity group a 'break-up fee'.

Before it declare a union with Blackstone et al, Freescale had been rumoured to be the subject of a private equity bidding war with another group - including Bain Capital, Kohlberg Kravis Roberts and Silver Lake - which had been predicted by many to be the eventual winner.

The group has already been on the acquisition trail this year, having snapped up the majority of Philips' semiconductor unit in August.