By Milana Vinn
(Reuters) - Infinera (NASDAQ:INFN) Corp, a U.S. manufacturer of semiconductors for the telecommunications industry that competes with China's Huawei, is exploring options that include a sale of the company, according to a person familiar with the matter.
The San Jose, California-based company, which has a market value of $1.6 billion, is working with investment bank Centerview Partners on a sale process that will launch in a few weeks, the source said.
Infinera shares rose over 11% on the news in afternoon trade to $7.64 a share.
There is no certainty that Infinera will reach any deal, added the source, who requested anonymity because the deliberations are confidential.
Infinera did not respond to requests for comment. Centerview declined to comment.
Infinera makes optical semiconductors and networking equipment for fixed line and mobile telecommunications networks. The company's shares are down 15% in the last 12 months, almost double the average of its peers, as it tries to recover from supply chain bottlenecks and boost its profit margins.
Oaktree Capital, the credit investment firm controlled by Brookfield Asset Management Ltd, sold its equipment maker Coriant to Infinera in 2018 for $430 million in cash and stock and currently holds a seat on Infinera's board. An Oaktree spokesperson declined to comment.