PMC-Sierra Rejects Microsemi' Proposal; Reiterates Commitment To Skyworks Deal

(RTTNews) - PMC-Sierra, Inc. (PMCS) announced that the latest proposal received from Microsemi Corp. (MSCC) is not superior to its existing agreement with Skyworks Solutions, Inc. (SWKS).

PMC-Sierra said its board believes that the mixed stock/cash consideration proposed by Microsemi does not provide superior value compared to the all cash $11.60 transaction with Skyworks.

As per Microsemi's proposal, PMC stockholders would receive $9.04 in cash and 0.0771 of a share of Microsemi common stock, representing a value of $11.82 per share of PMC common stock.

PMC noted that stock volatility adds a high level of uncertainty to the stock component of Microsemi's offer as well as high leverage adds financial risk to the execution risk associated with integrating the companies.

PMC said its board continues to recommend the amended and restated merger agreement with Skyworks to its stockholders.