Allegro Said to Draw Takeover Interest From ON Semiconductor (2)

Allegro Microsystems Inc.is drawing takeover interest from larger competitor ON Semiconductor Corp., according to people familiar with the matter. Allegro rose as much as 22%, its biggest gain since 2020.

Phoenix-based ON Semi has been working with advisers in recent months to pursue Allegro, the people said, asking not to be identified because the matter is private. It’s possible other suitors could emerge for Allegro and the company hasn’t indicated whether it would be open to a potential sale, they added.

Semiconductor companies interested in bulking up their automotive capabilities could look at buying Allegro, the people ...