Dialog waits as Atmel considers counter bid

Dialog waits as Atmel considers counter bid

Business news |
By eeNews Europe

Atmel did not reveal the name of the bidder but it has been previously reported that Cypress Semiconductor could try to trump an agreed bid from Dialog Semiconductor (see Report: Cypress preps bid to snatch Atmel from Dialog).

Atmel had agreed a $4.6 billion merger with Dialog Semiconductor plc (London, England) that is expected to close in 1Q16. However under the terms of the latest proposal Atmel shareholders would receive $9.00 in cash per share. As an alternative up to $1.0 billion of that bid could be received as shares in the proposed acquirer. 

The value of Dialog’s bid – $10.42 per Atmel share made up of $4.65 in cash and 0.112 of a Dialog American Depository Share based on Dialog’s closing stock price as of 18 September 2015 – may have fallen with Dialog’s share price since then.

Atmel said that the latest bid could result in a better offer and that board of directors had been advised that it could be a breach of their fiduciary duty not to consider the bid. However, for now the board continues to recommend to its stockholders the adoption of the merger agreement with Dialog. 

Dialog is a fabless chip company that sells chips for mixed-signal, RF, power control functions in smartphones and mobile consumer equipment. Atmel focuses on microcontrollers that provide computing power for consumer and industrial applications.

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Report: Cypress preps bid to snatch Atmel from Dialog

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