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Mergers and Acquistions News

Categories: Semi-Conductors

November 21st 2008, 15:54PM

ON Semiconductor has withdrawn from its joint bid with Microchip Technology to takeover Atmel, it has been revealed.

The firm pulled out of the proposed $2.3 million deal citing an "unforeseen deterioration in the semiconductor market" since the bid was made.

Keith Jackson, president and chief executive officer at the firm, stated that he still believed that purchasing the firm would be an attractive proposition, but it was just not possible.

Steve Sanghi, president, chief executive officer and chairman of Microchip Technology, expressed his disappointment at the news, but did not rule making a further bid at a later date.

He said: "Microchip must also withdraw its $5 per share offer for Atmel. However, Microchip intends to evaluate its potential alternatives for pursuing a transaction without ON Semiconductor."

Recently, the Financial Times reported that Microchip was planning to nominate candidates to join the board of Atmel after the latter rejected the takeover bid.

It is not clear if this plan is still to go ahead in light of the new development.ADNFCR-1833-ID-18889499-ADNFCR

 

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