PMC-Sierra Inc. has rejected the latest buyout offer of $2.4 billion from Aliso Viejo-based chipmaker Microsemi Corp.
The Sunnyvale-based company said Microsemi’s cash-and-stock bid of $11.82 per outstanding share of PMC stock doesn’t provide “superior value” to the all-cash offer of $11.60 provided by Apple supplier Skyworks Solutions Inc.
PMC’s board said the all-cash proposal by Woburn. Mass.-based Skyworks provides “more value certainty to shareholders,” citing market and chip sector volatility concerns, slowing global economic growth, rising interest rates, and geopolitical uncertainties.
“This volatility adds a high level of uncertainty to the stock component of Microsemi’s offer,” the board said.
Microsemi over the weekend upped its offer from $11.50 per share.
Under the latest terms of its proposal, PMC stockholders would receive $9.04 in cash and 0.0771 of a share of Microsemi common stock for each share of PMC common stock held at the close of the transaction.
PMC also cited the leverage Microsemi would take on—$2.7 billion in new transaction debt—in rejecting the proposal.
PMC’s board continues to recommend the amended proposal agreement with Skyworks, which upped its cash bid from $10.50 per share on Friday, Oct. 30.
Shares in the three companies Tuesday morning were relatively quiet. Microsemi traded at about $36 and its market cap was about $3.4 billion, PMC was at $11.70 and a $2.3 billion market cap, Skyworks shares traded at $78 and a market cap of $14.9 billion.
