The Chinese offer, of $21.70 per share in cash, was tendered on December 28, 2015, by China Resources Microelectronics Ltd. and Hua Capital Management and values Fairchild at about $2.46 billion. It compares with one of $20 per share that Fairchild accepted and entered in a merger agreement with On Semiconductor on November 18. This values Fairchild at about $2.4 billion.
On January 5, Fairchild said the Chinese offer could reasonably be expected to constitute a superior offer and would be examined although the board continued to support its recommendation of the agreed On Semi offer (see Fairchild says Chinese bid could be better). After conducting a review, and after consultation with Fairchild’s legal and financial advisors, the board of directors has concluded that the acquisition proposal is not superior to Fairchild’s existing agreement with On Semi.
As a result Fairchild remains subject to the On Semi merger plan and the Fairchild board continues to support that agreement.
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