Conexant Receives Rival Buyout Offer

Chip maker Conexant Systems Inc. said it has received a bid from a private equity firm that seeks to trump an early buyout offer from Standard Microsystems Corp.

NEWPORT BEACH, Calif. (AP) -- Chip maker Conexant Systems Inc. said Monday it has received a bid from a private equity firm that seeks to trump an early buyout offer from Standard Microsystems Corp.

Last month, Conexant agreed to be sold to larger rival Standard Microsystems. That deal is worth $2.25 per share in cash and stock, or about $284 million including $86 million in debt.

The new unsolicited offer, from Golden Gate Private Equity Inc., proposes to buy Conexant for $2.35 to $2.45 per share in cash. Conexant said the offer "would reasonably be expected" to lead to an offer that is superior to the Standard Micro bid and it will start discussions with Golden Gate.

Shares of Conexant rose 28 cents, or 13.6 percent, to $2.38 in after-hours trading.

In a statement, Standard Microsystems said its agreement with Conexant allows it to propose changes to the offer if it finds that another bid is better.

Separately, Conexant posted a fiscal first-quarter net loss of $9.7 million, or 12 cents per share, compared with earnings of $8.3 million, or 14 cents per share, in the same period a year earlier.

The company said its adjusted net loss was 2 cents per share in the October-December period.

Revenue fell 25 percent to $46.1 million from $61.8 million.
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