Microchip Technology ( MCHP) and ON Semiconductor ( ONNN) have proposed to acquire Atmel ( ATML) for $5 a share in cash.

The proposal, which is being led by Microchip, is a premium of 52% to Atmel's closing price of $3.28 on Wednesday. The deal values Atmel at $2.3 billion.

When approached by Microchip last month, Atmel, a chipmaker based in San Jose, Calif., refused to engage in talks about a potential transaction, Microchip said in a statement Thursday.

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