Mellanox Reaffirms Offer For EZchip, Requests Amendments To Merger Deal

(RTTNews) - Mellanox Technologies, Ltd. (MLNX) said it has sent a letter to Israeli fabless semiconductor company EZchip Semiconductor Ltd. (EZCH), requesting amendments to the terms of the definitive merger agreement under which Mellanox will acquire EZchip.

Mellanox has proposed amendments that include Mellanox permitting EZchip to solicit and enter into negotiations with third parties with respect to a potential superior acquisition during a "go-shop" period of 30 days from the date the amendment is executed. Mellanox will also waive its rights to be paid a termination fee pursuant to the existing agreement.

Mellanox has requested the postponement of the vote on the merger transaction and the removal from the agenda of the approval of the transaction at EZchip's November 12, 2015 Annual General Meeting.

Mellanox reaffirmed its full, fair and firm offer of $25.50 per EZchip share, which represents a premium of 16 percent over the closing price of EZchip shares on September 29, 2015, the last trading day prior to the public announcement.