Love, MEL (Atmel) recently announced that the company's board of directors has accepted the science and Technology core (Microchip Technology) active bid offer, and plans to terminate earlier by the dealer Dialog Semiconductor (Dialog Semiconductor) purchase agreement.
Microchip in December last year to $8.15 a share, or about $3.8 billion) bid, to the Atmel bid invitation. But earlier in September last year, Atmel has agreed to by the Dialog with was worth about $4.6 billion in cash and stock offer. Dialog expectations through the acquisition of Atmel make greater Internet of things (IoT) market. However, as the Dialog's share price decline, the amount of the deal has forced down.
Atmel has said on January 12, inform the board of directors of the Dialog, shows that the company intends to terminate the previous deal. Dialog still have the opportunity to put forward bargain before January 19, Atmel also has said that it would consider Dialog counter-offer proposal, however, the Dialog has already issued a statement saying will not modify the original proposal.
"Our conclusion is: raise the price of the acquisition of Atmel, does not bring the best benefits for our shareholders," Dialog executive Jalal Bagherli said, "we believe that the acquisition is a correct strategy decision for us, if ultimately unable to meet deadlines, we will be disappointed."
Because of Atmel think bid invitation from a Microchip conditions better, makes the Dialog will face this important acquisition of frustration. However, if the Atmel to abandon originally agreed with Dialog agreement, must according to the "break fee" of about $137.3 million to the Dialog.
As in the past year consolidation and deepening, takeover bid semiconductor company war continue to spread. According to the market the company IC Insights, in 2015, issued by the semiconductor industry mergers and acquisitions (M&A) deal worth has breached $105 billion, a semiconductor company in the past five years 8 times the average annual purchase higher value.
Adopt the ARM core the Microchip is a few of the main microprocessor (MCU) supplier, and the PIC microcontroller architecture. Atmel can provide ARM function, therefore, for Atmel, combined with Microchip seems to be more strategy than a merger with the Dialog. Opinion is likely to be the final end is Dialog took a $137.3 million break-up fee "piss off.
If so, the Dialog executive Jalal Bagherli, of course, will be disappointed, because it will be in the company's major public takeover, let he again faced with broken. In 2014, the Dialog with Austria microelectronics (AMS) to discuss the possibility of merger, but fell through because of both sides have always failed to reach a consensus. However, Microchip in the last year to $14 a share price of about $839 million bid, successfully acquired the analogy Micrel wafer suppliers.
Atmel also last week, on the other hand, in the fourth quarter of 2015. In the fourth quarter of 2015, the company says the revenue of between $262 million - $2.61, the company is better than previously expected $286 million - $2.66 revenue. The company attributed the reason is that the uncertainty of the acquisition process, lead to the dealer to reduce inventory levels, gives the overall amount of weaker than expected, especially in Asia.
