SAN DIEGO and HILLSBORO,
Ore., Feb. 24, 2014
/PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP
are investigating the proposed acquisition of TriQuint
Semiconductor, Inc. (NASDAQ: TQNT) by RF Micro Devices, Inc.
(NASDAQ: RFMD). On February 24, 2014,
the two companies announced the signing of a definitive agreement
pursuant to which the two companies will combine to form a new
company. Under the agreement, TriQuint shareholders will receive
1.675 shares of the combined company's common stock in exchange for
each share of TriQuint common stock, a cash value of $9.73 per share.
Is the Proposed Merger Best for TriQuint and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at TriQuint is undertaking a fair process to obtain
maximum value and adequately compensate TriQuint shareholders.
As an initial matter, the $9.73
merger consideration represents a premium of only 5.4% based on
TriQuint's closing price on February 24,
2014. That premium is substantially below the average
one day premium of nearly 51% for comparable transactions in the
past three years. Further, there are currently four analysts
with target prices higher than the $9.73 merger consideration, including an analyst
at DA Davidson & Company, who set a price of $10.00 on July 25,
2013.
In addition, on February 5, 2014,
TriQuint released its financial results for its fourth quarter
2013, reporting increases in revenue as well as record Mobile
Devices revenue in the second half of 2013. Specifically, TriQuint
reported that its fourth quarter revenue increased 7% over the
third quarter 2013 and 15% over the fourth quarter 2012, reaching
$267.7 million. Also, TriQuint's
Mobile Devices revenue for the second half of 2013 increased 66%
over the first half of 2013 and the company's Networks revenue for
the fourth quarter grew 21% over the same quarter 2012
Commenting on these results, TriQuint's President and Chief
Executive Officer, Ralph Quinsey,
remarked, "TriQuint's revenue for Q4 was $267.7 million, and non-GAAP earnings per share
was $0.16, both above the midpoint of
our guidance and well above our results in Q4 of 2012... We
anticipate revenue growth and significant year over year
improvement in profitability during 2014. Excluding Q1 we expect
non-GAAP gross margins to average 40% and non-GAAP earnings for
2014 to be 5 to 6 times our 2013 results on improved product mix
and focused cost reductions."
Given these facts, Robbins Arroyo LLP is examining the TriQuint
board of directors' decision to sell the company to RF Micro
Devices now rather than allow shareholders to continue to
participate in the company's continued success and future growth
prospects.
TriQuint shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material
information. TriQuint shareholders interested in information
about their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP