Just a few hours after Skyworks (SWKS +3%) and PMC-Sierra (PMCS +3.1%) announced they’d agreed to a revised $11.60/share, all-cash, deal (topping Microsemi’s $11.50/share bid), Microsemi (MSCC -2.3%) has unveiled an $11.88/share cash/stock offer.
Advertisement
The new deal between Skyworks and PMC-Sierra includes a termination fee of $88.5-million, higher than the $70.0-million agreed on in the first offer, the companies said.
Skyworks raised its offer to $11.60 per PMC-Sierra share from $10.50 per share.
Representatives from Microsemi weren’t immediately available.
Skyworks, based in Woburn, Massachusetts, makes chips used in aircraft and security systems.
Based in Sunnyvale, CA, PMC-Sierra designs, develops, markets, and supports semiconductor solutions for communications network infrastructure equipment worldwide.
Shares of PMC rose 2.8% to $11.97 in premarket trading Friday, while Skyworks added 1.1% to $75.45 and Microsemi were inactive. The company’s strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins.
Advertisement
Up to Thursday’s close PMC-Sierra’s shares had jumped more than 51 per cent since October 5, when Skyworks made its first proposal.
