PMC-Sierra Reaffirms Commitment to Skyworks Bid

PMC-Sierra Inc. reaffirmed its commitment to a roughly $2.24 billion cash offer from Skyworks Solutions Inc., saying it provides more certainty to shareholders than Microsemi Corp.'s cash-and-stock bid.

Just last Tuesday, Microsemi said PMC-Sierra preferred its offer over the deal with Skyworks.

In a news release on Monday, PMC-Sierra said that Microsemi's acquisition offer wasn't superior to its previous deal with Skyworks in the wake of recent market volatility that has been exacerbated by recent geopolitical events. The company said the decision was made following the advice of its financial advisers and outside legal counsel.

Spokesmen for Microsemi and Skyworks weren't immediately available to comment.

PMC-Sierra said that Microsemi's offer of $9.04 in cash and 0.0771 Microsemi share per PMC-Sierra was valued at $11.77 a share, based on Friday's closing price, a decline from earlier last week.

Skyworks's bid for PMC-Sierra stands at $11.60.

PMC makes products for storage, optical and mobile networks. Skyworks is a semiconductor company, and Microsemi makes chip equipment and provides software for cloud data.

Microsemi said Tuesday that PMC-Sierra board has given written notice to Skyworks of its intent to approve or recommend the Microsemi proposal. PMC-Sierra can terminate the Skyworks merger agreement if Skyworks doesn't make a superior proposal to Microsemi's bid within three business days following the receipt of the notice.

Write to Tess Stynes at [e-mail]

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(END) Dow Jones Newswires

November 16, 2015 09:35 ET (14:35 GMT)

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