Simtek Rejects Cypress Semi Takeover Bid

Cypress, based in San Jose, Calif., in February offered to buy Simtek but did not disclose terms. Cypress then owned about 3.2 million Simtek shares, or about 19.3 percent of the company.

Simtek said Friday Cypress is offering $2.20 per share. Its stock has traded in a 52-week range of $1.75 to $5.76 and closed Friday at $2.55, down a penny on the day.

Simtek said its board has concluded along with its financial and legal advisers that the offer price "significantly undervalues" its core business.

"We remain committed to building value for all of our stockholders and, as we have stated before, will continue to explore various strategic alternatives in order to maximize long-term value for stockholders," Robert Pearson, chairman, said in a statement. "We intend to vigorously resist any attempt by Cypress to acquire Simtek at a price that does not adequately value the company and its growth opportunities."