Tundra Semiconductor Corporation (TSX: T.TUN, Stock Forum) saw its shares jump 14% to $6.29 Monday, after California-based Integrated Device Technology (NASDAQ: IDTI, Stock Forum) submit a proposal to acquire the company in an all cash offer worth $6.25 per share, or an aggregate purchase price of $120.8 million.
Last month, Gennum Corporation (TSX: T.GND, Stock Forum) also made an offer to acquire the Ottawa-based company with a mixture of cash and stock, and increased its purchase price for Tundra earlier this month, from $86 million to $112 million.
The Tundra board of directors says it has determined that the IDT proposal is a superior proposal under the Gennum Agreement.
According to the companies’ agreement, Gennum has five business days in which to match the IDT proposal. Gennum says that it will “review and consider Tundra's notice and the IDT Offer and will decide on its course of action in the five business day matching period.”
On the Tundra Bullboard Monday, bihicelo said: “I don’t like $6.25 very much either and I especially don’t like cash in my cash account. A fair share exchange would be much better as it would allow tundra share holders a chance to participate in any future growth resulting from tundras technology”
