PMC-Sierra Board Looking at Microsemi Again?

I hope this wasn’t already covered.

Microsemi is now saying PMC-Sierra’s board will approve their raised bid for the company and not Skywork’s latest bid. Via Bloomberg Business:

Microsemi Corp. said its raised offer to buy PMC-Sierra Inc. for $2.3 billion was deemed superior by the target’s board, after a weeks-long bidding war with Skyworks Solutions Inc. for the maker of semiconductors for network drives.

PMC-Sierra’s board has given written notice to Skyworks of its intent to approve or recommend Microsemi’s proposal, which was increased to $12.05 a share on Wednesday, Microsemi said in a statement Thursday. PMC-Sierra will be entitled to terminate its merger agreement with Skyworks, unless Skyworks makes a new proposal within three business days that would cause Microsemi’s bid to no longer constitute a superior offer.

Microsemi had increased the cash portion of its offer to $9.22 a share from $9.04 in an Oct. 30 proposal to try to win over a PMC board that had opted for Skyworks’ all-cashproposal because it provided more certainty. The stock component remained unchanged at 0.0771 of Microsemi share for each PMC-Sierra share.

Microsemi’s new offer compares with the all-cash bid of $11.60 a share made by Skyworks last month. The battle over PMC-Sierra started Oct. 5, when Skyworks made afirst offer of $10.50 in cash.

Read the whole thing at…

And back and forth we go.

  • Matt
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