Tundra favours IDT offer as Gennum drops bid

Tundra Semiconductor Corp will likely become foreign-owned after receiving a superior bid to the sweetened offer made by Burlington-ON based Gennum Corp (R$, Match 30/09). San Jose CA-based Integrated Device Technology (IDT) has offered $120.8 million to acquire Tundra, an Ottawa-based fabless semiconductor firm. Gennum, which had already sweetened its original $86-million bid to $112 million, has informed Tundra that it will not match the IDT bid, taking instead a $5-million break-up fee. Tundra's roots go back to the early 1980s and was spun off from Newbridge Networks Corp in 1995. It has been suffering from declining sales although it has $63 million in cash which Gennum was planning to use to finance its acquisition. Tundra's board will meet on May 8 to make a final decision....