Chipmaker Montage raises offer for Pericom, tops Diodes' bid

Privately held chipmaker Montage Technology Group Ltd raised its offer for Pericom Semiconductor Corp (PSEM.O) to about $442 million, trumping Diodes Inc's (DIOD.O) $413 million bid.Montage said on Wednesday it would now offer $19 per share in cash for Pericom, higher than the $18.50 it had initially offered on Sept. 30.
Pericom shares rose about 3 percent to $18.22 in light premarket trading.
The semiconductor industry has seen rapid consolidation in the recent months as companies look to meet demand for cheaper chips and new
products to power Internet-connected gadgets.
The new offer comes a week after Pericom asked shareholders to vote for a merger with Diodes, saying the Montage deal lacked committed financing and could face significant regulatory scrutiny.
Diodes raised its offer for Pericom to $17.75 per share on Nov. 6 from $17 and said it had tied up financing for the deal from Bank of America.
Pericom, which makes connectivity, timing and power management chips used in cars, telecom networks and other devices, accepted Diodes' raised offer three days later.
(This version of the story corrects second paragraph to say Montage made its initial offer on "Sept. 30", not "Nov. 4")
(Reporting by Kshitiz Goliya in Bengaluru; Editing by Kirti Pandey)