ON Semiconductor to draw on facility, get financing for proposed purchase of Atmel assets

By Sara Rosenberg

New York, Oct. 2 - ON Semiconductor Corp. plans to use borrowings under its existing credit facility, additional financing and cash on hand to fund its proposed purchase of Atmel Corp.'s nonvolatile memory and RF and automotive businesses, according to an 8-K filed with the Securities and Exchange Commission Thursday.

Under the proposal, Microchip Technology Inc. is offering to buy Atmel for $5.00 per share in cash and immediately prior to the closing, ON Semiconductor would buy the nonvolatile memory and RF and automotive businesses.

Mocrochip's funds for the acquisition would come from cash and from proceeds from the sale of the specified assets to ON Semiconductor.

The companies have already met to discuss the transaction. According to the news release, however, Atmel's board of directors "appears unwilling to consider a transaction at this time under any circumstances."

The release went on to say that now a formal proposal has been put in writing as a result of Atmel's "apparent refusal to engage in transaction discussions".

ON Semiconductor is a Phoenix, Ariz.-based supplier of high performance, energy efficient, silicon solutions. Microchip Technology is a Chandler, Ariz.-based provider of microcontroller and analog semiconductors. And, Atmel is a San Jose, Calif.-based designer, developer, manufacturer and marketer of semiconductor integrated circuits products.

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