SAN FRANCISCO— Ferroelectric random access memory (FRAM) vendor Ramtron International Corp. said Monday (Sept. 10) that its board of directors once again rejected an unsolicited takeover offer from Cypress Semiconductor Corp., saying Cypress's latest bid remains too low.
Ramtron's board has previously rejected at least three takeover offers by Cypress. Last month, Cypress increased the value of its offer to acquire Ramtron to about $100 million from $86 million. It was the second time Cypress increased the value of the offer.
According to Cypress, the latest offer represents a 59 percent premium over the closing price of Ramtron's stock on June 11, the day before Cypress publicly disclosed its offer for Ramtron. Ramtron's stock traded at around $2.82 in mid-day trading Monday.
Ramtron (Colorado Springs, Colo.) said its board voted unanimously that the latest Cypress offer was too low after consulting with the company's financial and legal advisors.
In a statement, William Howard, Ramtron's chairman, said the revised Cypress offer undervalues Ramtron, particularly in light of the company's recent manufacturing agreement with Japan's Rohm Co. Ltd. and the company's intellectual property in the form of FRAM expertise. "We remain committed to determining a course of action through the strategic alternatives review that will enable Ramtron stockholders to fully realize the long-term value inherent in the company’s long-term growth prospects," Howard said.
Cypress's latest offer is set to expire at 5 p.m. Eastern Standard Time on Tuesday.
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