Following Integrated Device Technology’s (NASDAQ: IDTI, Stock Forum) rival bid for Tundra Semiconductor Corporation (TSX: T.TUN, Stock Forum) reported earlier this week, Gennum Corporation (TSX: T.GND, Stock Forum) said Thursday that it will not exercise its right to match the $120.8 million offer by the California-based company.
Last month, Gennummade an offer to acquire Tundra with a mixture of cash and stock, and increased its purchase price for Tundra earlier this month, from $86 million to $112 million.
However, on Monday, Integrated Device Technology announced a proposal to acquire Tundra in an all cash offer worth $6.25 per share, or an aggregate purchase price of $120.8 million.
The Tundra board of directors said Monday that it determined that the IDT proposal is a superior proposal under the Gennum Agreement.
Tundra says that as a result of Gennum's notification, it expects to be in a position to enter into an arrangement agreement with IDT after Tundra has paid Gennum a $5 million termination fee.
Shares of Tundra Semiconductor were down 2.8% to $6.18 Thursday.
