ON Semi (NASDAQ:ONNN) Takes Over Sanyo Semiconductor, Little Dilution

The original terms of the deal to acquire Sanyo Semiconductor by ON Semiconductor, was to use cash and stock, but that changed to cash and the assumption of debt, resulting in virtually no dilution in relationship to the deal.

Brigantine said, "We are adjusting our estimates following the completion of ON’s acquisition of Sanyo Semiconductor. When the deal was announced the acquisition was to be financed by cash and stock, but was paid for by cash and the assumption of debt. As a result there will be no stock dilution related to the acquisition...Incorporating the contribution from Sanyo Semiconductor, our 2011 estimates go to $1.25/ $3.54B from $1.05/ $2.4B previously. We are also introducing our 2012 estimates of $1.60/ $3.87B."

Brigantine Advisors maintains a "Buy" rating on ON Semi, which closed Wednesday at $11.37, gaining $0.26, or 2.29 percent. Brigantine increased their price target for ONNN from $10 to $14.