Monday 29 September 2014

Microchip Technology appoints...nobody, apparently

I have spent the last few weeks trying to find out which investment bank has been advising Microchip  Technology on its approach for CSR, the London-listed chipmaker. So far, I haven't turned up with anything.

Anyway, it turns out there might be a good reason why I haven't managed to find out (apart from being a rubbish journalist). According to some sources following this situation, Microchip hasn't been using a financial adviser since the negotiations began.

Apparently, the US based company has been using its own internal mergers & acquisitions department and some external accountants (possibly Ernst & Young) on the deal. Perhaps, this might explain why Microchip was 48 hours late with its own announcement back in August after CSR revealed it had received a takeover approach?

Now, this whole article might seem a bit "villagey" but there is an important (well, I think at least) reason for pointing this out. I am presuming it is going to be near impossible for Microchip to complete an acquisition of CSR without employing an investment banking adviser of note (this might even be a regulatory requirement in the Takeover Panel "code").

Obviously, talks between Microchip and CSR are moving forward as the latter would not have asked the Takeover Panel for an extension to its "put up or shut up" deadline. Here is a link to that announcement: http://www.investegate.co.uk/csr-plc--csr-/rns/statement-regarding-extension-to-deadline/201409250700195545S/

But once I/we find out who Microchip has appointed to advise on the deal, it will likely indicate the US company is very serious about putting a proper offer on the table for the FTSE 250 business.

And if you find out who is advising Microchip before I do, please don't hesitate to get in touch via the usual channels.

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