Continuing a bidding war for PMC-Sierra Inc, a maker of semiconductors for network drives, United States chipmaker Microsemi Corp has trumped a sweetened bid from rival Skyworks Solutions Inc with a $2.33-billion offer.
Advertisement
Microsemi had earlier offered to buy PMC-Sierra for $11.50 a share, while Skyworks had offered $10.50.
“Our revised proposal offers superior value to PMC’s shareholders, and Microsemi is uniquely positioned to realize significant synergies”, Microsemi Chief Executive Officer James Peterson said in a statement.
Microsemi’s cash-and-stock offer was worth the equivalent of $11.88 a share, pipping Skyworks’ cash offer of $11.60.
Based in Sunnyvale, CA, PMC-Sierra designs, develops, markets, and supports semiconductor solutions for communications network infrastructure equipment worldwide.
PMC shares rose 2.4 percent to close at $11.92 yesterday in New York. On October 5, Skyworks agreed to buy PMC for $10.50 a share, for what was then a 37 percent premium.
Skyworks, based in Woburn, Massachusetts, makes chips used in aircraft and security systems.
Advertisement
PMC’s board of directors is evaluating Microsemi’s proposal and has not made a determination as to whether the proposal constitutes a Superior Proposal under the terms of PMC’s merger agreement with Skyworks. Skyworks, a supplier to companies including Apple, plans to fund the acquisition with cash on hand and debt. But it also predicts that semiconductor sales will more than double next year, by 1.9 percent, to $344.1 billion, easing a few of the pressure in the industry. Shares in Microsemi were down 2 per cent at $36.01 while Skyworks stock jumped 3.5 per cent to $77.24.
