Atmel Receives Bid To Challenge Dialog Merger; Stock Pops

Atmel Corp. , which has agreed to be acquired by Dialog Semiconductor PLC, has received an unsolicited offer that could trump Dialog's bid. Atmel announced late Friday afternoon that it had received a bid of $9 a share from an unnamed potential acquirer, with an option to receive $1 billion worth of the acquirer's stock in lieu of cash. The San Jose chipmaker's deal with Dialog calls for payment of $4.65 in cash and 0.112 shares of Germany-based Dialog for each share of Atmel, a deal then valued at $4.6 billion. Atmel said its board had not yet determined if the offer was superior and therefore must be considered, but will enter into discussion with the potential acquirer. However, the board maintained its recommendation for stockholders to adopt the the merger agreement with Dialog. Atmel shares jumped nearly 9% in late trading, hitting $9.20 a share after closing with a 2.8% decline at $8.46.