News & Analysis
Comment
yalanand
Why is Zarlink's board rejecting Microsemi takeover bid ? Is it because ...
elctrnx_lyf
Zarlink would be a good bet to any company in Timing. Will IDT be interested?
Zarlink says it has other suitors
Dylan McGrath
9/1/2011 5:12 PM EDT
SAN FRANCISCO—Canadian mixed-signal chipmaker Zarlink Semiconductor Inc. said Thursday (Sept. 1) that its board of directors is negotiating with 15 unidentified third parties interested in acquiring all or part of the company.
Zarlink's revelation came as the company announced that its board voted unanimously to recommend that shareholders and debt holders vote to reject an unsolicited offer to acquire the company by Microsemi Corp.
Zarlink (Ottawa, Canada) said again that Microsemi's $549 million offer significantly undervalues Zarlink.
Earlier this month, Microsemi (Aliso Viejo, Calif.) formally launched an unsolicited hostile takeover bid to acquire all outstanding shares of Zarlink directly from shareholders for about $3.41 ($3.35 in Canadian dollars) per each common share of and about $1,393.89 ($1,367.35 in Canadian dollars) for every $1,019.52 principle amount of Zarlink convertible debt. The offer is expected to expire Sept. 22.
Last month, Zarlink's board rejected a takeover offer by Microsemi. It was the third time that Zarlink's board has rejected a takeover bid by Microsemi.
Zarlink said Thursday that the 15 parties that have expressed interest in acquiring all or part of the firm are negotiating with its board under non-disclosure agreements. The board is aggressively pursuing opportunities that may be financially superior to the Microsemi offer, Zarlink said. The company said its management and financial advisors have met with these entities and distributed to them under NDA confidential information about the company and its finances. A number of parties have begun a due diligence process and have expressed interest in pursuing a transaction with Zarlink, the company said.
"The board believes, based on the level of interest which has been expressed to date, that it is likely that a transaction will emerge from the board's strategic process which is superior to the Microsemi offers," said Adam Chowaniec, Zarlink's chairman, in a statement.
Zarlink said its board urges all shareholders and debt holders to reject the Microsemi offer by taking no action and not tendering their shares and debentures to the Microsemi offers. All of Zarlink's officers, directors and its former president and CEO intend to reject the Microsemi offer, the company said.
Zarlink's revelation came as the company announced that its board voted unanimously to recommend that shareholders and debt holders vote to reject an unsolicited offer to acquire the company by Microsemi Corp.
Zarlink (Ottawa, Canada) said again that Microsemi's $549 million offer significantly undervalues Zarlink.
Earlier this month, Microsemi (Aliso Viejo, Calif.) formally launched an unsolicited hostile takeover bid to acquire all outstanding shares of Zarlink directly from shareholders for about $3.41 ($3.35 in Canadian dollars) per each common share of and about $1,393.89 ($1,367.35 in Canadian dollars) for every $1,019.52 principle amount of Zarlink convertible debt. The offer is expected to expire Sept. 22.
Last month, Zarlink's board rejected a takeover offer by Microsemi. It was the third time that Zarlink's board has rejected a takeover bid by Microsemi.
Zarlink said Thursday that the 15 parties that have expressed interest in acquiring all or part of the firm are negotiating with its board under non-disclosure agreements. The board is aggressively pursuing opportunities that may be financially superior to the Microsemi offer, Zarlink said. The company said its management and financial advisors have met with these entities and distributed to them under NDA confidential information about the company and its finances. A number of parties have begun a due diligence process and have expressed interest in pursuing a transaction with Zarlink, the company said.
"The board believes, based on the level of interest which has been expressed to date, that it is likely that a transaction will emerge from the board's strategic process which is superior to the Microsemi offers," said Adam Chowaniec, Zarlink's chairman, in a statement.
Zarlink said its board urges all shareholders and debt holders to reject the Microsemi offer by taking no action and not tendering their shares and debentures to the Microsemi offers. All of Zarlink's officers, directors and its former president and CEO intend to reject the Microsemi offer, the company said.
|
|
|
|
|
Navigate to related information
GREAT-Terry
9/1/2011 8:53 PM EDT
Microsemi is so active in acquiring companies to expand its product portfolio. However, are all these acquisitions really win-win? Many products are not very closely related so I have high doubt if this company can handle all well and expand each product line to the full potential.
Sign in to Reply
elctrnx_lyf
9/3/2011 9:40 AM EDT
Zarlink would be a good bet to any company in Timing. Will IDT be interested?
Sign in to Reply
yalanand
9/5/2011 6:05 AM EDT
Why is Zarlink's board rejecting Microsemi takeover bid ? Is it because Microsemi is undervaluing Zarlink ?
Sign in to Reply