Microchip drops Atmel bid

MAKER OF CHIPS AND BITS Microchip has said that it is not interested in buying Atmel.

The company said that the global economy, along with the chip industry, has "deteriorated significantly" since it first made an offer of $5 per share in October.

Steve Sanghi, president, chief executive and chairman of Microchip, said in a press release that in light of the economic uncertainty and the lack of visibility that continues to exist with respect to Atmel's business, Microchip is no longer able to put a value on Atmel.

ON Semiconductor was involved in the deal to buy Atmel but it pulled out in November. At the time Microsoft also pulled out but said it planned to evaluate its potential alternatives for pursuing a transaction without ON. µ

L'Inq
AP