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Zarlink: Microsemi bid undervalues company

Posted: 25 Jul 2011 ?? ?Print Version ?Bookmark and Share

Keywords:acquisition? analog? mixed-signal?

Analog and mixed-signal firm Microsemi Corp. has announced that it has proposed to buy rival Zarlink Semiconductor Inc. Zarlink has acknowledged that it has received the unsolicited bids from Microsemi and said that the bids have all been rejected because they undervalue the company.

Microsemi has submitted two previous bids to Zarlink last May 20 and June 17. The bids were for about $3.2 (Canadian $3) and $3.4 (Canadian $3.25) per outstanding share. The latest bid of $3.5 per share would value Zarlink at about $549 million. This number is too low for Zarlink.

Microsemi's buying spree
Microsemi is on a buying spree with its acquisition of Brijot Imaging Systems and its plans to buy Zarlink.

According to Adam Chowaniec, chairman of Zarlink's board of directors, in a statement, "Zarlink continues to make strong progress as it focuses on growth opportunities in the communication and medical markets. Our line circuit and network timing products are winning new designs with customers and gaining market share."

"We have been aggressively investing to build a unique strategic position in the medical wireless market and with our radio products now being designed in with the leading device manufacturers we are at a point of growth inflection with this segment of our business. Microsemi's proposal clearly does not capture the value that has been created or that exists in the company," he added.

- Peter Clarke
??EE Times

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