Fairchild Semiconductor Says Purchase Proposal From China Resources Is Not A Superior Bid Compared To ON Semiconductor

Shares of Fairchild Semiconductor Intl Inc (NASDAQ: FCS) lost more than 2 percent on Tuesday after the company reaffirmed its commitment to be acquired by ON Semiconductor Cor.

Fairchild Semiconductor agreed to be acquired by ON Semiconductor Corp on November 18, 2015 for $20 per share. The company received a second unsolicited buyout offer from a consortium of investors led by China Resources Microelectronics and Hua Capital Management on December 28, 2015 for $21.70 in cash - an offer which was rejected on Tuesday.

Related Link: Fairchild Semiconductor May See M&A Bidding War, Credit Suisse Says

"The Board further concluded that, given the Company would be required to forgo the existing transaction with ON Semiconductor (and the premium agreed to be paid to the Company stockholders in the transaction with ON Semiconductor) in order to enter into a potential transaction with the Consortium, the Company and its stockholders would be bearing an unacceptable level of risk for a failure to obtain CFIUS [The Committee on Foreign Investment] approval," Fairchild said in a regulatory filing.

Reuters, citing a "person familiar with the matter," reported that Fairchild's Board of Directors may be open to another bid from the Chinese consortium.