By Tiernan Ray
http://blogs.barrons.com/techtraderdaily/2011/02/07/conexant-talking-to-golden-gate-on-rival-bid-to-smsc/?mod=yahoobarrons
Chip maker Conexant Systems (CNXT), which agreed last month to be bought out by SMSC (SMSC) this afternoon said it received an unsolicited proposal from private equity firm Golden Gate Private Equity for a price in a range of $2.35 to $2.45 per share, above the $2.25 per share agreeed to with SMSC.
The Golden Gate offer is all in cash, Conexant said, which is in contrast to SMSC’s offer for roughly half in cash and the rest in SMSC stock.
Conexant has entered into discussions with Golden Gate, it said, after its board determined that the unsolicited offer “would reasonably be expected to result in or lead to a “Superior Proposal” as such term is defined in the SMSC Agreement.”
Separately, Conexant issued fiscal Q1 results roughly in line with the single analyst estimate tracked by Thomson Reuters. The company reported revenue of $46.1 million, down 25%, year over year, and a net loss per share of 2 cents.
Conexant shares ended the day up 2 cents at $2.10.
Update: SMSC issued its own press release, stating its proposed merger with CNXT is “highly complementary,” and saying it will have a chance to propose changes if Conexant decides another proposal is superior to its bid.
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