LONON Integrated Device Technology, Inc. has bid Cdn$ 6.25 per share to acquire the whole stock of communications chip specialist Tundra Semiconductor Corporation (Ottawa, Canada), trumping an offer from Gennum Corp. earlier this month.
The IDT bid values Tundra at Cdn$ 120.8 million (about $100 million). It is not subject to any due diligence and IDT has indicated that the deal will be funded from its cash balance.
Tundra said it considers the IDT Offer constitutes a "Superior Proposal" to the ones from Gennum.
Earlier this month Gennum increased the value of its offer to buy Tundra Semiconductor by about 31 percent to Cdn$112 (about $92.3 million).
Last month, the two companies agreed to a deal under which Gennum would acquire all outstanding shares of Tundra for cash and stock worth Cdn$86 million (about $70.8 million).
Tundra said Gennum has until the 1st of May to make a counter bid and if this is not forthcoming it considers it is permitted to terminate the "Gennum Agreement".
It would have to pay a Cdn $5.0 million termination fee to Gennum.