NEW YORK (AP) — Chipmaker Atmel said Wednesday it decided an offer from Microchip Technology is superior to a previous bid from Dialog Semiconductor that it accepted in September.
Atmel said the Microchip Technology offer is worth $8.15 per share in cash and stock, or $3.43 billion. The company did not say it accepted Microchip Technology's offer, but Atmel informed Dialog that it plans to end their merger agreement unless the British company makes a better offer by Tuesday. If Atmel breaks its agreement with Dialog it will have to pay the company $137.3 million.
Dialog Semiconductor did not immediately respond to a request for comment.
Shares of Atmel rose 31 cents, or 4 percent, to $7.99 in morning trading and Microchip Technology stock gained $1.89, or 4.5 percent, to $43.74.
In September Atmel and Dialog Semiconductor said the Dialog offer was worth $10.42 per share, also in cash and stock. But Dialog shares have lost more than 40 percent of their value since the deal was announced. Trading in London, shares of Dialog Semiconductor picked up $1.63, or 6.2 percent, to $27.94.
Cypress Semiconductor also made an offer for Atmel but ultimately withdrew it.