Allegro MicroSystems Board Deems ON Semiconductor's $6.9B Offer 'Inadequate'
Allegro MicroSystems has rejected ON Semiconductor's acquisition proposal of $35.10 per share, citing it as inadequate despite representing a 57% premium over its recent trading price. The board's decision comes after consultations with independent financial and legal advisors, indicating a potential strategic divergence between the two companies. ON Semiconductor has been persistent in its outreach, having increased its initial offer in hopes of aligning with Allegro's valuation expectations.
- This rejection highlights the complexities of merger negotiations, especially when perceived value diverges significantly between the acquiring and target companies, suggesting a potential for a protracted negotiation period.
- What factors will ultimately determine Allegro MicroSystems' valuation and willingness to engage in further discussions with ON Semiconductor?