While the rest of the chip industry is consolidating like a mad thing to make a buck or two, Pericom Semiconductor has just turned down an offer from the Chinese outfit Montage in favour of a cheaper deal from Diodes.
The deal was believed to be $442 million offer which trumped a rival bid from Diodes.
The reason Pericom said no, was not the money but the “regulatory hurdles” and a lack of committed financing” for the deal.
Pericom makes connectivity and power management chips and it did not believe that Montage was “unable or unwilling to obtain fully committed financing.”
This was news for the Chinese analogue chip maker Montage which said that it had secured committed financing, and said Pericom was employing “scare tactics”.
Montage also urged Pericom shareholders to vote against Diodes’ offer ahead of a special shareholder meeting on Friday.
Diodes raised its offer for Pericom to $17.75 per share on November 6 from $17 and said it had tied up financing for the deal with Bank of America.
Pericom, whose chips are used in cars, telecom networks and other devices, accepted Diodes’ raised offer three days later.