Microsemi takes $548.7 million cash bid to Zarlink’s shareholders

US-based maker of microchips for the aerospace and defence industries, Microsemi Corp, yesterday took its hostile $548.7-million cash bid directly to shareholders of its rival Zarlink Semiconductors, Whose board insisted on placing major restrictions.

"We are disappointed by Zarlink's board of directors' insistence on placing onerous restrictions on Microsemi that would have prevented us from presenting our attractive offers to Zarlink's shareholders and debenture holders," said James Peterson, Microsemi's president and CEO.

"Under these circumstances, and in the absence of a more attractive alternative, Microsemi is compelled to take its offer directly to shareholders,'' he added.

Microsemi said that it has formally commenced its offer to acquire all of Zarlink's outstanding common shares and all the outstanding 6 per cent unsecured, subordinated convertible debentures maturing on 30 September 2012.

Shareholders of Zarlink will receive C$3.35 for each common share and debenture holders will receive C$1,367.35 per C$1,000.00 principal amount of the convertible debentures validly deposited plus accrued and unpaid interest to the date such debentures are taken up.

The offer represent a 40-per cent premium over the closing price of Zarlink's common shares on 19 July 2011, the last trading day prior to the announcement of its offer. (See: Microchip maker Microsemi launches $548.7 million hostile bid for Zarlink)