Here's Why Fairchild Semiconductor Is Up 3.5%

Shares of Fairchild Semiconductor Intl Inc (NASDAQ: FCS) were trading higher by nearly 4 percent Tuesday morning.

Fairchild Semiconductor entered into a merger agreement with ON Semiconductor Corp (NASDAQ: ON) back in November.

Bloomberg on Tuesday reported that Fairchild has now received a takeover proposal from a consortium led by China Resources Holdings which is "superior" to ON Semiconductor's bid of $21.70 per share.

The publication, citing an analyst at FBR & Co., noted that there is a "meaningful probability" that ON Semiconductor could raise its bid to $22 per share "and perhaps higher" to counter China Resources' bid.

The stock traded recently at $21.20, up 3.5 percent.