LONDON – The board of ferroelectric memory company Ramtron has rejected the latest, improved offer from Cypress Semiconductor and is now in discussions with "major semiconductor companies" about a potential strategic transaction.
It is not clear whether that transaction, which remains only a possibility, would be a sell-off of all or part of the company or the formation of a joint venture.
Ramtron International Corp. (Colorado Springs, Colo.) announced it has rejected an offer from Cypress Semiconductor Corp. (San Jose, Calif.) to acquire the firm for $2.68 per share. This is an improved offer from the previous Cypress tender of $2.48 per share.
In a statement Ramtron pointed out that its stock has been trading at above the Cypress offer price since Cypress went public on its attempts to buy the company. On Tuesday (July 3) Ramtron stock closed at $3.01 and market valuation of about $104 million.
Last month Cypress went public with the offer to buy Ramtron for roughly $86 million. Cypress said it also bid to acquire Ramtron for $3.01 per share back in 2011.
"Even at an offer price of $2.68 per share, we continue to believe the offer fails to reflect the Company's strengthened competitive position, enlarged addressable market and progress being made toward expanding the Company's product portfolio beyond specialty memory products to also include integrated semiconductor solutions," said William Howard, Ramtron's Chairman, in the statement.
In Schedule 14D-9 form that Ramtron said it is filing Thursday (July 5) with the Securities and Exchange Commission the company discloses it is investigating a potential sale of the company; a strategic alignment with one or more investors or joint venture counterparties; other potential strategic transactions to recognize the long-term value of the company for its stockholders; or continuing with the company's current plans.
Ramtron said Cypress had been invited to take part in that strategic alternatives review process but had made no effort to participate and had chosen instead to bypass the process and make its unsolicited tender offer.
Ramtron said it is now engaged in discussions with a number of other parties, including major semiconductor companies, regarding a potential transaction.
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