The cash and share deal worth nearly $4 billion was announced last May and repudiated in July by MaxLinear who quoted “a material adverse effect” as its reason for killing the deal.
Yesterday, Silicon Motion stated: “MaxLinear’s professed reason is a pretext and has been rejected in case after case under Delaware law, which governs the MAE issue, where buyers have sought to back out of merger agreements at the eleventh hour,”
The agreement set the termination fee at $160 million with the proviso it could be reduced to $120 million in some circumstances.
