SAN JOSE, Calif. (AP) -- Atmel Corp.'s board rejected an unsolicited, $2.3 billion bid for the company from two competitors, saying late Wednesday that the deal is not rich enough.
Chip makers Microchip Technology Inc. and ON Semiconductor Corp. had proposed to buy Atmel for $5 per share in cash earlier this month. The price was a 52 percent premium to the Atmel stock price before the offer was made.
"Atmel's board has determined that Microchip and ON's highly conditional proposal significantly undervalues Atmel and would deprive Atmel stockholders of the greater value that can be achieved through the continued execution of the company's transformation plan," Chairman David Sugishita said in a statement.
Microchip and ON had said the deal would be partly financed by the sale of Atmel's nonvolatile memory and radio frequency and automotive units to Phoenix-based ON.
Atmel shares rose 27 cents, or 7.6 percent, to $3.80 in midday trading. In the past year, the stock has ranged from $2.50 to $5.03.