NEW YORK (TheStreet) -- Cypress Semiconductor (CY) shares are down 0.8% to $13.03 in afternoon trading on Friday after Integrated Silicon (ISSI) announced that it received an unsolicited bid from the chip maker to acquire Integrated Silicon's outstanding shares for $19.75 per share in cash.
Integrated Silicon has already accepted an offer from Uphill Investment for $19.25 per share, but the company said that Cypress' offer constitutes a superior proposal and it is therefore obligated to engage in talks with Cypress as part of its duty to shareholders.
Integrated Silicon shares are flat at $20.14 in trading today.
Integrated Silicon said that it is not "withholding, withdrawing, qualifying, amending or modifying its recommendation with respect to the Uphill Agreement and the merger with Uphill, is not proposing to do so, and is not making any recommendation with respect to the Cypress proposal."
TheStreet has further coverage of Cypress' bid here.
TheStreet Ratings team rates CYPRESS SEMICONDUCTOR CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CYPRESS SEMICONDUCTOR CORP (CY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."