MXL - Silicon Motion 'categorically' rejects purported termination of MaxLinear

2023-08-07 10:25:13 ET

• Silicon Motion ( NASDAQ: SIMO ) wrote a letter to MaxLinear ( NASDAQ: MXL ) on Monday, "categorically" rejecting MaxLinear's purported termination of the deal to combine the two semiconductor companies.
• Late last month, MaxLinear ( MXL ) said it exercised its contractual rights to terminate its $3.8 billion planned purchase of Silicon Motion ( SIMO ), saying SIMO suffered a material adverse effect," and SIMO is in material breach of representations, warranties, and covenants.
• Following MaxLinear's termination, Silicon Motion said it intended to enforce the deal.
• Taiwan-based Silicon Motion ( SIMO ) reported second-quarter results last month that were mixed compared to analysts' estimate and initiated guidance for the coming quarter.
• Silicon Motion ( SIMO ) shares fell 2.8% on Monday while MaxLinear ( MXL ) dropped 4% .

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