ON Semiconductor launches bid for California Micro

AP News
Posted: Dec 28, 2009 10:33 AM

Chip maker ON Semiconductor Corp. said Monday it has launched its tender offer for rival California Micro Devices Corp.

ON Semiconductor, in a deal approved by the boards of both companies, is offering California Micro shareholders $4.70 per share, or more than $107 million total.

The offer represented a 54 percent premium over California Micro's previous closing stock price when the deal was announced Dec. 14.

ON, based in Phoenix, is making the acquisition to improve its slate of products for the wireless, computing and consumer electronics markets. It expects to close the deal in the first quarter.

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The company's shares rose 12 cents to $8.99 in morning trading, while California Micro, which is based in Milpitas, Calif., saw shares shed a penny to $4.69.