Microchip Technology bought its way into Atmel’s heart with a $3.42 billion cash-and-stock proposal and a nice box of choccies.
This saw off a rival deal from Dialog Semiconductor.
Atmel said Microchip had offered $7.00 per share in cash and $1.15 in Microchip stock, totaling $8.15 per share.
Analysts think the happy couple could be a formidable force in the microcontroller
Dialog in September offered $4.65 in cash and 0.112 of its American depositary shares for each Atmel share, pegging the deal value at $4.6 billion at the time. It is unlikey to come up with the readies to match.
It will also collect $137.3 million from Atmel in a breach of promise agreement the pear had.
Dialog can’t be too upset about the rejection. Its shares, which have slumped 42 percent since its agreement with Atmel in September, jumped more than 14 percent in Frankfurt. It seems that most people think that Atmel has issues and Dialog would be crazy to settle down.
It is not the first time Microchip has tried to buy Atmel. The company made an unsolicited bid for Atmel in 2008 and then launched a proxy fight, which it later withdrew.