Microsemi Raises Buyout Bid For PMC-Sierra

By Tomi KilgoreMarketWatch Pulse

Microsemi Corp. raised its buyout bid for chip maker PMC-Sierra Inc. , which puts it even further above the bid from Skyworks Solutions Inc. . Under terms of the revised bid, PMC shareholders would get $9.22 in cash and 0.0771 Microsemi shares for each PMC share they own. Based on Tuesday's closing prices, that valued PMC shares at $12.05 each. That's 3.4% above Tuesday's closing price, and about 3.9% above Skyworks' all-cash bid. "Our revised offer delivers even more value to shareholders and we have addressed PMC's preference in increasing the cash component of our proposal," said Microsemi Chief Executive James Peterson. On Monday, PMC rejected Microsemi's bid, saying Skyworks' all-cash bid provided more certainty to PMC shareholders. PMC's stock, which was indicated about 2.4% higher in light premarket trade, has soared 27% year to date, while the S&P 500 has slipped 0.4%.

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