NEW YORK (TheStreet) -- Shares of Cypress Semiconductor (CY) were falling 4.9% to $12.73 Monday after the company failed to reach a merger agreement with Integrated Silicon Solution (ISSI) as a result of potential antitrust concerns.
Shares of Integrated Silicon Solution were falling 1.6% to $20.40.
Cypress didn't meet its own deadline to complete the agreement, though Integrated Silicon Solutions is still open to close the deal, according to the Wall Street Journal. Cypress raised its offer to acquire Integrated Silicon to $643 million in May to outbid Summitview Capital.
If the deal was completed the combined company would be the largest supplier of SRAM for the global auto industry, Integrated Silicon Solutions said when Cypress raised its bid. The company said the deal would likely not receive approval without divestment of some of all of its SRAM business.
Integrated Silicon Solutions said it is "disappointed that Cypress is not willing to agree to take all necessary actions to ensure receipt of antitrust clearance."
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 largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow."