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In a deal that will create the world's third biggest chip manufacturer after Intel and Samsung, Texas Instruments plans to acquire National Semiconductor for $6,5-billion.

Under the terms of the deal, which still needs regulatory approval, TI will pay $25 a share for NatSemi, a 77% premium based on the latter's closing share price yesterday of $14.07.
The New York Times reports that the announcement significantly boosted shares of NatSemi which saw its stock rise by 73% to $24.30 in after-hours trading.
TI's shares, on the other hand, lost 1,55% and were trading at $33.58.