Rival bid withdrawn for Springs-based chip manufacturer Atmel Corp
Atmel shares ended trading on Friday at $8.02, down from the $10.42 that the merger agreement with Dialog valued them at the point of signing. The firm has a 50-day moving average price of $215.75 and a 200-day moving average price of $188.15.
Morgan Stanleyrestated an “overweight” rating and issued a $13.00 price objective on shares of Atmel in a report on Tuesday, June 9th. Equity Analysts at the Firm raises the price target to $9.5 per share from $8 per share. With the volume soaring to 6,543,760 shares, the last trade was called at $8.02. Canaccord Genuity reissued a “hold” rating and issued a $8.00 price objective on shares of Atmel in a research note on Wednesday, July 29th.
Dialog, which is listed in London, has seen its shares drop about 20 percent since the deal with Atmel was announced, as investors became sceptical of the potential combination. The 52-week high of Atmel Corporation (NASDAQ:ATML) is $10.5 and the 52-week low is $5.84. Year-to-Date the stock performance stands at -3.8%. Analysts anticipate that Allegiant Travel Company will post $12.66 EPS for the current fiscal year. Shareholders of record on Monday, September 14th were issued a $0.04 dividend.
Nonetheless, Cypress is
said to be working on an offer to acquire Atmel and to disrupt Dialog’s
expansion plans. The company has a market cap of $3,370 million and the
number of outstanding shares have been calculated to be 420,249,000
shares. During the same period in the previous year, the company posted
$0.09 earnings per share.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. This represents a $0.16 annualized dividend and a dividend yield of 2.00%. The Microcontroller section comprises the Company’s general pbjective microcontroller and microprocessor families, AVR 8-bit and 32-bit products, Atmel SMART ARM established products, its 8051 8-bit goods, and commercial wireless products that are designated, among others.
The Nonvolatile Memory segment contains electrically erasable programmable read only (NASDAQ:ATML), erasable programmable read-only memory (EPROM) devices and secure cryptographic products.
Dialog, an Anglo-German company which is heavily exposed to Apple Inc AAPL.O and Samsung Electronics Co 005930.KS for its sales, agreed to acquire Atmel to diversify its client base in automotive markets, as well as network-connected chips used in industrial gear, also known as the “Internet of Things”. The Multi-Marketplace along with Other segment includes standard products and application specific for aerospace applications.
