Microchip Technology drops Atmel bid – Yahoo! Finance

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Microchip Technology drops Atmel bid

via Microchip Technology drops Atmel bid – Yahoo! Finance.

Tuesday February 10, 2009, 6:16 pm EST

CHANDLER, Ariz. (AP) — Chip maker Microchip Technology Inc. said Tuesday it is no longer interested in buying Atmel Corp., another chip maker, and is withdrawing a slate of directors it had nominated to its board.

Microchip said the global economy, along with the chip industry, has “deteriorated significantly” since it first made an offer of $5 per share in October.

“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,” said Steve Sanghi, president, chief executive and chairman of Microchip, in a statement.

In a statement, Atmel said it remains “confident that we are on the right track to further enhance shareholder value” as it transforms its business to focus on its core microcontroller segment.

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