LONDON – Canadian chip company Zarlink Semiconductor Inc. has acknowledged the receipt of unsolicited bids for the company from analog and mixed-signal rival Microsemi Corp. and said that they have all been rejected because they undervalue the company.
The latest bid – to acquire all of the outstanding shares of Zarlink (Ottawa, Ontario) for Canadian $3.35 per share in cash – would value Zarlink at about $549 million.
Zarlink said it had received two previous unsolicited bids from Microsemi (Sunnyvale, Calif.) dated May 20, 2011 and June 17, 2011 for Canadian $3.00 and Canadian $3.25 per share.
"Zarlink continues to make strong progress as it focuses on growth opportunities in the communication and medical markets. Our line circuit and network timing products are winning new designs with customers and gaining market share," said Adam Chowaniec, chairman of Zarlink's board of directors, in a statement. "We have been aggressively investing to build a unique strategic position in the medical wireless market and with our radio products now being designed in with the leading device manufacturers we are at a point of growth inflection with this segment of our business. Microsemi's proposal clearly does not capture the value that has been created or that exists in the company."
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