Cypress boosts tender offer for Ramtron shares

Cypress boosts tender offer for Ramtron shares to reflect deal with company, extends deadline

Associated Press

SAN JOSE, Calif. (AP) -- Cypress Semiconductor Corp. said Tuesday that it boosted its tender offer for shares of chipmaker Ramtron International Corp. and extended the offer's deadline until Oct. 9.

The increase to $3.10 per share reflects the deal San Jose, Calif.-based Cypress struck last week with Ramtron. The deal, which values the company at about $109.8 million, was subsequently approved by the boards of both companies.

Cypress offered to buy Ramtron, based in Colorado Springs, Colo., for $2.48 per share in June, its second attempt to acquire the company after a rejected bid last year. It then raised its offer to $2.68 per share later that month. In August it boosted the offer to $2.88 per share and launched a tender offer for the company's shares.

Ramtron's board rejected that offer, saying it was still too low and advising its shareholders not to tender their shares. Last week, the company said that Cypress' bid of $3.10 per share is in the best interest of its shareholders, customers and employees.

The acquisition price values Ramtron at about $109.8 million, excluding debt, but includes Ramtron shares that Cypress already owns.

Cypress' tender offer was previously set to expire on Tuesday. As of Monday afternoon, 5.7 million of Ramtron's shares had been tendered, a fraction of its roughly 35 million outstanding shares, according to FactSet.

In morning trading, Cypress shares fell 43 cents, or 3.6 percent, to $11.28, while Ramtron shares were unchanged at $3.09.

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