Cypress quits Atmel acquisition bid

1 min read

No sooner than Cypress appeared to have declared an interest in bettering Dialog’s bid for Atmel than it withdrew the offer.

Cypress has been on the acquisition trail for a while now. While it managed to buy Spansion, it failed in its bid for memory developer Integrated Silicon Solutions after a protracted bidding war with a Chinese consortium.

According to a company statement, Cypress had previously submitted an offer to acquire Atmel. ‘That offer expired and Cypress has withdrawn its interest in an acquisition of Atmel. Cypress regularly evaluates acquisition opportunities to complement its existing business and maintains a disciplined approach to ensure that it continues to deliver long term value to its shareholders’.

What’s not clear is when Cypress made an offer for Atmel; was it a ‘take it or leave it’ approach made after Dialog’s bid or did Dialog get wind of a potential deal and make a better offer?

One thing appears to be clear; few investors are impressed with the Dialog deal and its share price has dropped significantly.