Cypress Semiconductor bids for Ramtron International
(Reuters) - Chipmaker Cypress Semiconductor Corp (CY.O) on Tuesday offered to buy smaller rival Ramtron International Corp RMTR.O for about $87.6 million in cash, revamping a bid it made last year.
Cypress said it would acquire all of Ramtron's outstanding shares for $2.48 a share, a 37 percent premium to the stock's Monday close. The deal value is based on Ramtron's outstanding shares of 35.3 million, according to Thomson Reuters data.
Cypress Chief Executive T.J. Rodgers said the company had offered to buy Ramtron for $3.01 a share last year, but it was summarily rejected.
Ramtron later sold about 20 percent of its stock in a public offering at $1.79 per share, Rodgers said.
"Although we would prefer to proceed through a negotiated agreement, we are fully committed to this transaction, and will take the steps necessary to complete it," CEO Rodgers said in a letter to Ramtron's board.
Rodgers set a June 19 deadline for the Ramtron board to respond to the offer.
Cypress, which has retained Greenhill & Co as its financial adviser, said it was prepared to begin a cash tender offer with no financing or due diligence conditions.
Cypress, whose last significant acquisition was Simtek Corp for $46 million in 2008, makes microcontrollers and chips used in touchscreen phones and tablets. Along with Synaptics Inc (SYNA.O) and Atmel Corp (ATML.O), Cypress controls 90 percent of the business.
Shares of Ramtron, which has a market value of about $64 million, closed at $1.81 on Monday on the Nasdaq.
(Reporting by Jochelle Mendonca and Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)