Tuesday, November 18, 2008

ON Semiconductor Withdraws Atmel Acquisition Offer

ON Semiconductor, one part of the hostile bid for San Jose-based chip maker Atmel, said Tuesday that it has withdrawn from a joint proposal with Microchip Technology to acquire Atmel. ON Semiconductor blamed "unforseen deterioration in the semiconductor market" and the weakness in the financial markets for the move, saying it still believes Atmel’s Nonvolatile Memory and RF and Automotive businesses would an an attractive strategic acquisition for the company. Microchip Technology said it is looking at other potential alternatives for the transaction, without ON Semiconductor. The two had offered $2.3B for Atmel in October.