Cypress Urges Ramtron To Comply - The Saga Continues...
It looks as if Cypress Semiconductor is desperate to acquire Ramtron. The firm has extended its sweetened tender offer of $2.88 per share in cash from September 11th to September 25th 2012.
It seems Ramtron's FRAM technology expertise is too appealing to resist.
Cypress' offer represents a 59 percent premium over Ramtron's closing price of $1.81 per share on June 11th, 2012, the day before Cypress publicly disclosed its offer for Ramtron. Except for the extension of the expiration date, all other terms and conditions of the offer remain unchanged. The all-cash offer is not conditioned on due diligence or financing.
But the innovator of SRAM memory and USB controllers that enhance connectivity and performance in multimedia handsets, PCs and tablets is becoming more than a little irritated.
T.J. Rodgers, President and Chief Executive Officer of Cypress, says, "We have been patient throughout Ramtron's strategic review process, which now has taken over 12 weeks and has not produced a superior alternative. We question the basis and rationale for Ramtron's publicly-disclosed valuation expectations, as we continue to believe that our offer represents full and fair value and provides Ramtron's stockholders with immediate liquidity at a substantial premium."
Rodgers continues, "Although I am encouraged by the dialogue between our respective bankers and lawyers, I urge Ramtron's board of directors to come to the table to reach a negotiated transaction with us. Additional delay will only be to the detriment of Ramtron's stockholders. Ramtron's business faces continued operating risk and further delay makes it increasingly likely that Ramtron will again need to raise additional funds to finance its operations."
Greenhill & Co., LLC is acting as financial advisor to Cypress and dealer manager for the offer, and Wilson Sonsini Goodrich & Rosati, Professional Corporation, is acting as legal counsel.
