KKR reports stake in chipmaker Marvell Technology

Firm: Kohlberg Kravis Roberts & Co.

Target: Marvell Technology Group

Investment: 6.8 percent stake

Marvell’s shares rose about 5 percent in extended trading after closing at $13.76 on the Nasdaq on Monday.

KKR also said the firm may engage in discussions with the board and the company’s management that may include a merger or reorganization of the business.

Marvell, which sells chips to flash drive and mobile and wireless device makers, in November forecast fourth-quarter revenue above analysts’ estimates.

About 47 percent of Marvell’s revenue last year came from storage customers such as Western Digital Corp and Seagate Technology, for whom it makes chips used for reading and writing data on hard-disk and flash drives.

Soham Chatterjee is a Reuters correspondent in Bangalore