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Atmel considers Microchip Technology and ON Semiconductor’s new buy-out offer
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Microchip
Technology, Inc. and ON Semiconductor Corporation have sent an
acquisition proposal to the Board of Directors of Atmel Corporation.
The proposal sets out the companies’ plans to offer $5.00 per Atmel
share in cash, effectively valuing the company at $2.3 billion and
offering a premium of 52.4% to Atmel’s closing price of $3.28 on
October 1, 2008.
The companies provided a transcript of the letter that was sent to the Atmel Board of Directors following a rejection of the companies’ previous offer. Should Atmel accept this current offer, it would be led by Microchip and financed in part by the sale of Atmel’s nonvolatile memory and RF and automotive businesses to ON Semiconductor.
Atmel has quickly responded to this offer, highlighting that the share value was taken following a bad week of trading. The company's closing price as of October 1st was significantly below that of the past 10 days, and the 52.4% premium was based on this day's poor performance. According to the company, this offer greatly undervalues the company's true worth.