ON Semi gives up on Atmel takeover bid

ON Semi and Microchip announced Oct. 5 their intention to acquire Atmel for $5 per share in cash. Atmel rejected the bid, saying the unsolicited proposal was not in the best interests of its stockholders.

Keith Jackson, president and CEO of ON Semiconductor, said, "While we believe that Atmel's non-volatile memory and RF and automotive businesses would be an attractive strategic acquisition, we have decided to withdraw from the proposal due to the unforeseen deterioration in the semiconductor market since we announced our proposal as well as the unprecedented weakness in the financial markets."

Microchip president, CEO and chairman, Steve Sanghi, stated, "We are disappointed that difficult semiconductor industry and financial market conditions have resulted in ON Semiconductor withdrawing from our joint proposal to acquire Atmel. As a result of ON Semiconductor's withdrawal, Microchip must also withdraw its $5 per share offer for Atmel. However, Microchip intends to evaluate its potential alternatives for pursuing a transaction without ON Semiconductor."