PMC-Sierra Rejects Rival Bid From Microsemi
November 02 2015 - 1:10AM
Dow Jones News
PMC-Sierra Inc. said Microsemi Corp.'s $2.35 billion takeover
offer wasn't superior to a bid from Skyworks Solutions Inc. because
the Skyworks deal "provides more value certainty to shareholders"
than the Microsemi proposal, which was "nominally higher."
On Friday, PMC's board backed an all-cash bid from Skyworks for
$11.60 a share, or $2.24 billion. Microsemi's cash-and-stock offer
valued PMC at $11.88 a share, up 3.7% from a previous offer, based
on Microsemi's Thursday closing price.
PMC makes products for storage, optical and mobile networks.
Skyworks is a semiconductor company and Microsemi makes chip
equipment and provides software for cloud data.
In its statement late Sunday, PMC cited capital-market
volatility as a reason to stick with Skyworks' all-cash bid. It
also said that because Microsemi was trading near its five-year
high, "when using a sixty- or ninety-trading-day average of
Microsemi closing stock prices, the value of the Microsemi offer is
essentially the same as Skyworks' proposal."
PMC also said Microsemi would be one of the most highly
leveraged, publicly traded chip companies after taking into
consideration a potential acquisition of PMC.
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(END) Dow Jones Newswires
November 02, 2015 00:55 ET (05:55 GMT)
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