Atmel Suitor Calls Off Takeover Effort

San Jose-based Atmel is no longer facing a hostile takeover of the firm from Microchip Technology, after Microchip said Tuesday afternoon that it would withdraw its offer for the firm. Microchip said that the global economy and the semiconductor business environment have "deteriorated significantly" since its initial bid, and it is no longer able to value Atmel. Microchip was looking to pay $5 per share, or $2.3 billion in total, for Atmel. Microchip had made an offer in October along with ON Semiconductor, however, Atmel rejected the bid, and ON Semiconductor pulled out in November.