Elmos Semiconductor jumps as founders consider sale of German firm

Elmos Semiconductor ELGG.DE shares rise 10% in pre-market indications as the German chip manufacturer's founders consider selling the company, according to three people familiar with the matter told Reuters on Thursday

Elmos, which has a market cap of around 2.3 billion euros ($2.66 billion), hired Morgan Stanley to advise on the process, the people said

German chipmaker Infineon IFXGn.DE and U.S.-based Qualcomm QCOM.O would be logical candidates for acquisition, one of the sources commented

Elmos, Infineon and Morgan Stanley declined to comment, while Qualcomm did not immediately respond to requests for comment

"Unexpected and clear positive for Elmos shares putting a takeover floor under the shares," a local trader says

The stock, which has gained 32% YTD, is seen at the top of Germany's small-cap index .SDAXI

($1 = 0.8650 euros)