Microchip Technology, ON Semiconductor respond to Atmel after $5-per-share offer is rejected

By Lisa Kerner

Charlotte, N.C., Oct. 30 - Microchip Technology Inc. and ON Semiconductor Corp. said they were disappointed that Atmel Corp. rejected their $5-per-share offer to acquire the company.

Both companies will meet with their respective advisers to determine their course of action, a Microchip news release said.

It was previously reported that Atmel's board of directors called the $2.3 billion offer "highly conditional" and "inadequate."

Microchip, a Chandler, Ariz.-based semiconductor producer, had planned to finance the acquisition in part by the sale of Atmel's nonvolatile memory, radio frequency and automotive businesses to ON Semiconductor, a prior news release said.

ON Semiconductor would have financed its purchase using a combination of existing cash resources, borrowings under its existing credit facility and additional financing.

ON Semiconductor is a Phoenix-based designer, manufacturer and marketer of power and data management semiconductors and standard semiconductor components.

Atmel, based in San Jose, Calif., designs and manufactures microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency components.

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