PMC-Sierra Reaffirms Commitment to Skyworks Bid
November 16 2015 - 9:50AM
Dow Jones News
PMC-Sierra Inc. reaffirmed its commitment to a roughly $2.24
billion cash offer from Skyworks Solutions Inc., saying it provides
more certainty to shareholders than Microsemi Corp.'s
cash-and-stock bid.
Just last Tuesday, Microsemi said PMC-Sierra preferred its offer
over the deal with Skyworks.
In a news release on Monday, PMC-Sierra said that Microsemi's
acquisition offer wasn't superior to its previous deal with
Skyworks in the wake of recent market volatility that has been
exacerbated by recent geopolitical events. The company said the
decision was made following the advice of its financial advisers
and outside legal counsel.
Spokesmen for Microsemi and Skyworks weren't immediately
available to comment.
PMC-Sierra said that Microsemi's offer of $9.04 in cash and
0.0771 Microsemi share per PMC-Sierra was valued at $11.77 a share,
based on Friday's closing price, a decline from earlier last
week.
Skyworks's bid for PMC-Sierra stands at $11.60.
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.
Microsemi said Tuesday that PMC-Sierra board has given written
notice to Skyworks of its intent to approve or recommend the
Microsemi proposal. PMC-Sierra can terminate the Skyworks merger
agreement if Skyworks doesn't make a superior proposal to
Microsemi's bid within three business days following the receipt of
the notice.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 16, 2015 09:35 ET (14:35 GMT)
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