Chip maker Cypress Semiconductor Corp. (CY: Quote), Monday once again sweetened a hostile offer to acquire all outstanding shares of its smaller rival Ramtron International Corp. (RMTR: Quote) to $2.88 per share in cash from its prior offer of $2.68 per share. Following the news, Ramtron shares gained over 8.0 percent in morning trade on the Nasdaq.
Cypress' $2.88 per share offer represents a 59 percent premium over Ramtron's closing price on June 11, 2012 - the day before Cypress disclosed its offer for Ramtron.
Cypress said the revised offer will expire on September 11, 2012. As on August 24, about 3.02 million shares had been tendered and not withdrawn.
It was in June 2012 that Cypress made an unsolicited bid to acquire Colorado-based Ramtron for $2.48 per share, but the offer was spurned, with Ramtron opining the price failed to reflect its true value. The company also revealed plans to embark on strategic alternatives, including a potential sale. Cypress subsequently sweetened its bid to $2.68 per share, but in vain.
An acquisition of Ramtron is expected to enable Cypress, which makes microcontrollers and chips used in touchscreen phones as well as tablets, to gain access to Ramtron's ferroelectric random-access memory or F-RAM technology. This is Cypress' second takeover bid for Ramtron, having offered to buy the company in March 2011 for $3.01 per share.
Greenhill & Co., LLC is acting as financial advisor to Cypress and dealer manager for the offer. Wilson Sonsini Goodrich & Rosati, Professional Corporation, is acting as legal counsel.
CY is trading at $11.82, down 0.25%, while RMTR shares gained 8.40%, trading at $2.85, on the Nasdaq.
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by RTT Staff Writer
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