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Gennum sweetens bid for Tundra Add to ...

Microelectronics company Gennum Corp. has sweetened its offer for Tundra Semiconductor Corp. to about $112-million from an $86-million.

The two companies announced Friday that Gennum had agreed to increase the $4.43 cash and share bid it made in March to $5.81 for each Tundra share, an increase of 31 per cent.

Tundra has more than 19.3 million shares outstanding.

The Tundra board has approved the bid and urged shareholders to vote in favour of the new offer, the companies said.

The friendly takeover is slated to close June 1.

After the deal closes and Gennum issues about 10.5 million shares under the deal, the Burlington, Ont., company is expected to have about 45.9 million shares issued and outstanding.

The transaction will leave current Gennum shareholders owning about 77 per cent of the merged company and Tundra shareholders owning 23 per cent.

Ottawa-based Tundra, with 276 employees at the end of 2007, designs and makes computer chips used in communications equipment.

Gennum makes integrated circuits used in video, hearing and data communications equipment. Gennum employed 441 people at the end of 2007.

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