Microchip Technology raises bid for Silicon Storage to thwart competing offerBy AP
Tuesday, February 23, 2010
Microchip Tech raises bid for Silicon Storage
SUNNYVALE, Calif. — Microchip Technology Inc. on Monday raised its purchase price for Silicon Storage Inc. a second time, competing with a private-equity firm for the maker of flash memory cards used in digital cameras and MP3 players.
Microchip is now offering $3.05 per share in cash, or about $292 million in total. That’s up from the Feb. 23 offer of $3 per share, raised from the original offer of $2.85 announced Feb. 3.
Shares of Sunnyvale-based Silicon Storage shares fell 11 cents, or 3.4 percent, to $3.14 in morning trading, indicating that investors were and still are expecting a better offer.
Microchip, based in Chandler, Ariz., makes semiconductors and microcontrollers. Its stock was down 21 cents, or 0.8 percent, at $27.05.
The competing private-equity firm is Cerberus Capital Management LP. Silicon Storage’s board had determined that an offer from Cerberus was better than Microchip’s previous offer.
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