Fairchild Semiconductor Turns Down Higher, Unsolicited OfferSelina Wang
Fairchild Semiconductor Inc. said an unsolicited takeover offer last week for $21.70 a share wouldn’t necessarily be a “superior proposal,” and that it plans to stick with a previous bid by ON Semiconductor Corp., according to a statement Monday.
A group led by China Resources Holdings Co.’s semiconductor arm and Hua Capital Management Ltd. had made an offer for Fairchild Semiconductor on Dec. 8, people familiar with the matter said, valuing the company at $2.46 billion.
That bid followed a November agreement with ON Semiconductor to buy Fairchild for $2.4 billion.
Fairchild remains subject to the merger agreement with ON Semiconductor and its “board of directors has not changed its recommendation in support” of that deal, according to the statement.
The semiconductor industry has seen $110 billion in deals this year as companies combine in the face of rising costs of production and a shrinking customer list. China Resource’s takeover offer came amid China’s efforts to become a national champion in semiconductors.
Fairchild Semiconductor shares slipped 2.2 percent in early trading to $20.20. The stock gained 22 percent this year through Friday, compared with a 4.4 percent drop on the Standard & Poor’s Midcap 400 Index.