By Silicon Motion Technology has challenged MaxLinear’s decision to terminate their planned merger, leading to a potential dispute between the two chipmakers. This comes in spite of the recent approval received from Chinese regulators for the proposed merger.
In a statement, Silicon Motion stated that the eleventh-hour termination by MaxLinear is invalid and represents a repudiation of their obligations. They assert that they have fulfilled all their obligations under the merger agreement and have not experienced any significant adverse effects.
Silicon Motion expects MaxLinear to honor their obligations and urges them to comply with the merger agreement. They also express their intention to vigorously enforce their rights under the agreement.
MaxLinear, on the other hand, stated in a securities filing that certain closing conditions specified in the merger agreement have not been met and cannot be fulfilled. They further claim that Silicon Motion is currently dealing with a material adverse event, as defined in the agreement, and is in breach of several provisions.
Additionally, MaxLinear highlights that the extended outside date for completing the acquisition, which was May 5th, has already passed and was not automatically extended.
Both companies seem to be heading towards a contentious resolution as they navigate this terminated merger agreement.
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