Original Fairchild Semi merger is ON

Silicon wafer - Wikimedia Commons -The unsolicited proposal by ON Semiconductor to buy the grand daddy of semiconductors, Fairchild, was rejected by the board and the original offer looks set to proceed.

Fairchild received what it described as an unsolicited offer from ON to buy it for $21.70 per share.

But Fairchild had already agreed to be bought by ON Semi for $20 a share, and it looks like that deal will stand.

In a statement, Fairchild Semi said its board of directors had conducted a review with its lawyers and its financial advisors at Goldman Sachs.

Fairchild said it had “concluded that the unsolicited proposal received on December 7 2015 to acquire Fairchild for $21.70 per share in cash would not reasonably be expected to result in a ‘superior proposal’”.

The board said that it would stick by the original agreement.

In a filing with the SEC, Fairchild said it considered the first offer was better because it offered “greater closing certainty”.