Bidding war for SST continues
Mark LaPedus
EE Times

03/08/2010 2:10 PM EST
URL: http://www.eetimessupplynetwork.com/223200138

SAN JOSE, Calif. -- The bidding war for Silicon Storage Technology Inc. (SST) continues.

Flash supplier SST has entered into an amendment to its previously announced merger agreement with Microchip Technology Inc. Under the terms of the amended agreement, the purchase price for each share of SST common stock has been increased from $3.00 to $3.05 per share in cash.

Microchip proposed the revised terms of the merger agreement in response to a proposal from an affiliate of Cerberus Capital Management L.P. That firm made a ''superior proposal'' than that of Microchip, according to SST.

As reported, Microchip recently said it struck an agreement to pay approximately $273 million to acquire SST, which has also terminated a previous merger deal with a private equity investment group.

Then, last month, Microchip entered into an amendment to its Feb. 2 definitive agreement to acquire SST. Under the revised terms, SST shareholders would receive $3.00 per share.

This amendment was in response to an offer made by another party to SST on Feb. 19. The ''other party'' is Cerberus Capital Management, according to Microchip (Chandler, Ariz.).