SWKS: PMCS receives another buyout offer

Investment Analysis Clubs Saul’s Investing Discussions
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Microsemi offers $2.2 bln for PMC-Sierra, trumping Skyworks bid

http://finance.yahoo.com/news/chipmaker-microsemi-offers-buy…

This are announced this morning. Hopefully, this won’t make the deal more expensive for SWKS. In the SWKS press release from the last week the following statement was included:

“The Boards of Directors of each company have approved the transaction, which is expected to close in the first half of calendar 2016, subject to PMC shareholder approval, receipt of regulatory approvals and other customary closing conditions.”

I wonder if the action is binding or if there are any penalties for withdrawing from the deal.

Chris

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“The Boards of Directors of each company have approved the transaction, which is expected to close in the first half of calendar 2016, subject to PMC shareholder approval, receipt of regulatory approvals and other customary closing conditions.”

It may not be binding, but shareholder approval could be difficult to obtain when those same shareholders know that a higher bidder is waiting in the wings.

Fletch

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subject to PMC shareholder approval

I would think that this would be the problem if there is an offer for more $ on the board. Of course, you can put what I know about corporate law on a pin head.

DT