Microchip, ON Semiconductor Rejected By Atmel In Acquisition Bid

Chandler, Arizona-based Microchip Technology and Phoenix-based ON Semiconductor have been rejected by Atmel in their bid to buy the California-based maker of semiconductors. According to a statement released by Atmel, it is rejecting the offer because it is not in the best interest of its stockholders, and is inadequate "in multiple respects." Microchip and ON Semiconductor had offered $2.3B in cash to buy Atmel in early October. Among reasons for the rejection, Atmel said the deal significantly undervalues the firm, is unacceptably conditional, and subject to "significant" execution risk.