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Ramtron once again rejects Cypress' takeover bid

Posted: 12 Sep 2012 ?? ?Print Version ?Bookmark and Share

Keywords:ferroelectric random access memory? takeover offer? manufacturing agreement?

Ramtron International Corp.'s board of directors once again rejected an unsolicited takeover offer from Cypress Semiconductor Corp. The ferroelectric random access memory (FRAM) vendor stated that Cypress's latest bid is still too low for them to accept.

The company's board previously rejected at least three offers by Cypress. Last month, Cypress increased its offer to acquire Ramtron from $86 million to $100 million, marking the second time they've increased the value of their offer.

According to Cypress, the latest offer represents a 59 percent premium over the closing price of Ramtron's stock on June 11, the day before Cypress publicly disclosed its offer for Ramtron. Ramtron's stock traded at around $2.82 in mid-day trading Monday.

Ramtron said its board voted unanimously that the latest Cypress offer was too low after consulting with the company's financial and legal advisors.

In a statement, William Howard, Ramtron's chairman, said the revised Cypress offer undervalues Ramtron, particularly in light of the company's recent manufacturing agreement with Japan's Rohm Co. Ltd. and the company's intellectual property in the form of FRAM expertise. "We remain committed to determining a course of action through the strategic alternatives review that will enable Ramtron stockholders to fully realize the long-term value inherent in the company's long-term growth prospects," Howard said.

- Dylan McGrath
??EE Times

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