Microsemi Again Sweetens Bid for PMC-Sierra
November 18 2015 - 9:10AM
Dow Jones News
Microsemi Corp. again sweetened its proposal to acquire
PMC-Sierra Inc. after PMC's board chose not to recommend the
semiconductor company's most recent offer despite being dubbed
"superior" to rival Skyworks Solutions Inc.'s bid.
In the $2.3 billion cash-and-stock deal, PMC shareholders would
receive $9.22 in cash and 0.0771 of a share of Microsemi common
stock for each share of PMC common stock. Based on Microsemi's
closing price Tuesday, the deal is valued at $12.05 per PMC
share.
Earlier this month, Microsemi said PMC had declared its previous
acquisition proposal superior to PMC's agreement with Skyworks,
continuing the dueling negotiations between the semiconductor
companies. This was shortly after PMC had said the offer wasn't
superior to the Skyworks bid because Skyworks all-cash $2.24
billion deal "provides more value certainty to shareholders" than
the Microsemi proposal, which was "nominally higher."
"The board of PMC chose not to recommend to their shareholders
our previous proposal, which was 17 cents per share higher than the
existing offer from Skyworks," said Microsemi Chief Executive James
Peterson.
He added the revised offer addresses PMC's preference in
increasing the cash component of the proposal.
Microsemi anticipates more than $100 million in annual cost
savings with more than $75 million realized in the first full
quarter of combined operations. The company estimates about 60
cents of adjusted earnings per share accretion in the first full
year after closing the transaction.
Also earlier this month, Microsemi said it shortened the time to
file an exchange offer with the Securities and Exchange Commission,
in an attempt to try to consummate the deal by the end of 2015.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 18, 2015 08:55 ET (13:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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