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Dialog Shares Slump After $4.6 Billion Deal to Acquire Atmel

  • Cash, stock offer 43% more than Atmel's closing price Friday
  • Dialog moves on after merger with AMS collapsed last year
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Dialog Semiconductor Plc fell the most in nine years in Frankfurt trading after agreeing to buy Atmel Corp. for about $4.6 billion -- more than its own market value -- to expand into the automotive industry and everyday objects that are increasingly connected to the Internet.

The cash-and-stock offer values San Jose, California-based Atmel, a maker of chips used in industrial machinery and cars, at $10.42 a share, equivalent to a premium of 43 percent based on the stocks’ closing prices on Friday. Strategic buyers on average paid a premium of 19 percent in comparable chip-industry transactions in the past 12 months, according to data compiled by Bloomberg.