NEW YORK (The Deal) -- Shares of Hittite Microwave (HITT) closed Friday at 19 cents over their value in the $78 per share cash tender offer from Analog Devices (ADI) and hovered a penny over the deal price Monday. Questions regarding the auction process -- Analog Devices approached Hittite -- were raised when the merger was announced June 9, but went unanswered on the conference call.
Analog launched the tender offer Monday and Hittite filed its management recommendation on form 14D-9 with the Securities and Exchange Commission. That document shows the company considered options but other potential bidders all thought its valuation too high to compete.
Hittite designs and manufactures integrated radio frequency, or RF, circuits, microwave and millimeter wave applications in cell phone, satellite and other applications in telecommunications, medical, aerospace, defense and other industries. Analog Devices said the deal complements its strengths in RF and data conversion.
A significant aspect of the Hittite board deliberations over the potential deal, which began late last year, was Hittite's need to develop its data conversion capabilities to maintain a competitive position in cellular infrastructure. Hittite intended to do so through the acquisition of assets from another company, which it deemed a complex and risky project.
Analog Devices began its bidding at $74 per share, which, in April it raised to $75.50, stating at the time that bid was a stretch. Finally, it went to the $78 per share deal price, which Hittite's financial advisor Deutsche Bank thought was its best offer absent a competing bidder.