UPDATE: Topeka Capital Markets Downgrades Spreadtrum Communications on New Increased Bid From China-based Tsinghua Holdings

In a report published on Friday, Topeka Capital Markets analyst Suji De Silva downgraded Spreadtrum Communications (NASDAQ: SPRD) from Buy to Hold and lowered the price target on the company from $32 to $31.

In the report, Topeka Capital Markets stated, "We believe the new increased bid from China-based Tsinghua Holdings, which Spreadtrum has agreed to, more fairly values the underlying asset. We believe the dialogue with Tsinghua has been cooperative and expect a successful acquisition closure at the new bumped up price of $31."

Spreadtrum Communications closed on Thursday at $26.45.