Ramtron Rejects Cypress' $87.5M Takeover Offer
COLORADO SPRINGS, Colo. (AP) - Ramtron International Corp. said Monday that Cypress Semiconductor Corp.'s $87.5 million offer to buy the company doesn't reflect its full value and isn't in the best interest of its shareholders.
The Colorado Springs-based semiconductor maker also said that its board approved the start of a review of "strategic alternatives," which could include the possible sale of the company. The news sent Ramtron shares up 23 cents, or 9.5 percent, to $2.66 in afternoon trading.
It said that Cypress has been invited to take part in the process. Later on Monday, Cypress declined to comment on Ramtron's rejection.
Last week, San Jose, Calif.-based Cypress offered to buy Ramtron for $2.48 per share. While the per-share price was lower than the $3.01 per share that Cypress offered for Ramtron last year, the number of outstanding Ramtron shares has risen significantly since then, making the total value of the new offer essentially the same.
William Howard, Ramtron's chairman, said that over the past 18 months, his company has made significant moves to improve its competitive position. As a result, Ramtron's board believes that Cypress' offer doesn't reflect its true value and prospects for long-term growth.
Cypress shares rose 18 cents to $13.68 in afternoon trading.
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