Atmel Shares Soar After Strategic Review Acknowledgment

Shares of Atmel Corp. surged on Tuesday after the microcontroller maker said Monday night that it was extending the retirement date of its chief executive through the completion of a "strategic evaluation process."

Atmel shares were up 16% to $7.63 in morning trading, though they are still down 12% in the past month.

The San Jose, Calif.-based company said Steven Laub, chief executive and president of Atmel since August 2006, had put off his retirement to facilitate "the completion of an ongoing strategic evaluation process," but declined to offer any further details. Mr. Laub had previously said he would retire in August.

Atmel has been tight-lipped on the review, despite previous media reports that indicated the company was considering a number of options including a possible sale. Atmel didn't immediately respond to a request for comment.

Atmel's review comes at a time when the chip space is consolidating at a frenzied pace. Earlier this year, Avago Technologies bought rival Broadcom Corp., while Intel Corp. acquired Altera Corp. and NXP Semiconductors bought Freescale Semiconductor. Chip giant Qualcomm Inc. has also said that it is reviewing a potential split of the company.

Atmel builds small processors and other hardware for products like smartwatches and fitness bands.

Write to Ezequiel Minaya at [e-mail]

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(END) Dow Jones Newswires

August 25, 2015 14:46 ET (18:46 GMT)

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