While everyone admits that the chip industry is consolidating faster than the Greek debt, Cypress is being shunned like a rabid dog.
It has withdrawn its offer for Atmel, the second failed attempt by the company to acquire a chipmaker this year. Cypress submitted a bid to Atmel’s board, but dropped it after the offer expired, Cypress said. Cypress also tried to buy chipmaker Integrated Silicon Solution earlier this year but lost out to Uphill Investment, which clinched a deal in June for more than $700 million.
Atmel, which makes microcontrollers used in a wide array of electronics, instead allowed itself ot be bought by Dialog Semiconductor for about $4.6 billion. It is not clear why Cypress could not go through with it, money is likely.
But Cypress believed its offer was superior to Dialog’s cash-and-stock deal. Cypress shares dropped as much as 5.8 percent on Monday on the news.
Dialog, which is listed in London, has seen its shares drop about 20 percent since the deal with Atmel was announced, as investors became sceptical of the potential combination.