Microchip Technology Inc. and On Semiconductor Corp. made an unsolicited offer to buy chip maker Atmel Corp. for $2.3 billion and split the assets.
The companies would pay $5 a share, 52% more than Atmel's closing price Wednesday. Microchip and On made the proposal public by releasing a letter to the board in a statement Thursday, saying Atmel directors had refused to negotiate. Atmel shares surged 34% on Thursday.
Atmel had lost more than a third of its value in the last year and plans for a turnaround haven't produced results, Microchip and On said.
The "rapidly deteriorating" economy will make those efforts even more difficult, they said. Microchip would acquire most of Atmel's businesses, with On buying the memory and automotive units, the companies said.
"We are confident that, given the opportunity, Atmel's stockholders and your other stakeholders will enthusiastically support this offer," Microchip Chief Executive Steven Sanghi and On chief Keith Jackson said in the letter.
Atmel, whose products include chips for video game controllers, said its board would review the proposal.
