Integrated Silicon Solution Inc. (ISSI) said it would likely participate in negotiations with Cypress Semiconductor Corp. over Cypress’s recent unsolicited bid to acquire ISSI for about $658 million.
Cypress recently sent an open letter to ISSI’s CEO and executive chairman expressing its interest in acquiring ISSI for $19.75 per share. ISSI had in March agreed to be acquired by a consortium of Chinese venture capital firms led by Summitview Capital for $19.25 per share, or about $640 million.
ISSI's board of directors concluded after consultation with its financial advisor and legal counsel that the Cypress bid was superior to the consortium’s offer. Failure to negotiate with Cypress following the proposal would be inconsistent with its fiduciary duties to stockholders, ISSI says.
“ISSI currently expects to participate or engage in discussions or negotiations with Cypress regarding the offer and/or furnish information to Cypress” in compliance with the merger agreement with the Summitview consortium, Cypress says.
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