Fairchild Semi To Consider Rival Bid From China Resources And Hua Capital

Fairchild Semiconductor International Inc. said Tuesday that an unsolicited bid from China Microelectronics Limited and Hua Capital Management Co., Ltd to buy the company for $21.70 per share in cash could reasonably be expected to result in a superior offer to the one on the table from On Semiconductor Corp. . The company said that the terms of its merger agreement with On Semi allow it to consider the Chinese bid, including holding talks with China Resources and Hua Capital. Fairchild entered the agreement with ON Semi in November, at which time ON Semi was offering to buy Fairchild for $20 a share. "Fairchild remains subject to the agreement and plan of merger with ON Semiconductor, and Fairchild's board of directors has not changed its recommendation in support of that agreement, nor is the board of directors making any recommendation with respect to the revised proposal," the company said in a statement. Shares rose nearly 4% in premarket trade on the news, and are up 24% in the last 12 months, while the S&P 500 has lost 0.4%.