Chipmaker Microsemi Corp.’s latest cash-and-stock bid to acquire PMC-Sierra Inc. has been deemed a “superior proposal” by the board of the Sunnyvale-based target company.
Aliso Viejo-based Microsemi was informed Monday night that a newly increased bid of $11.97 per outstanding share of PMC stock trumps the $11.60 cash proposal from Apple supplier Skyworks Solutions Inc.
The Microsemi bid is valued at roughly $2.34 billion.
The proposal calls for PMC shareholders to get $9.04 in cash and 0.0771 shares of Microsemi common stock for each share of PMC common stock held at the close of the transaction.
Microsemi wants to close the deal by the end of the year, and put a limit of three business days on the offer. PMC’s board has informed Microsemi of its intent to approve and recommend the proposal.
The latest turn in the bidding war comes one week after PMC rejected Microsemi’s cash-and-stock offer of $11.82 per share.
PMC said at the time that it preferred Skyworks all-cash bid of $11.60 per share because it provided “more value certainty to shareholders,” citing market and chip sector volatility concerns, slowing global economic growth, rising interest rates, and geopolitical uncertainties.
Microsemi shares are down 2.6% in early afternoon trading to a market value of about $3.52 billion.
PMC shares are up 1.1% to a market value of about $2.33 billion.
Skyworks shares are down 5.4% to market cap of $15.72 billion.