Wednesday, October 11, 2006

Atmel (ATML) Higher on Reports Ex-CEO Could Launch Bid

Shares of Atmel (Nasdaq: ATML) are higher today on reports from the company's ex-CEO George Perlegos may be interested in making a bid for the company. According to the report, Perlegos has been meeting with private equity firms to discuss his plans.

Perlegos and others, including his brother Gus, were fired in August over the alleged misuse of corporate travel funds. However, the brothers sued Atmel accusing them of wrongful termination. A tentative Delaware court date is set October 17th

.Recent chatter that RDG Capital LLC could raise its $5.50 per share offer for Atmel have helped propel the shares recently. RDG Capital's offer, made in May, was spurned while Perlegos was still at the helm. His removal led to the speculation.

Yesterday, mutual fund giant Fidelity disclosed it raised its stake in Atmel to 11.7%.

Shares of Atmel are 3.5% higher to $6.21 in early action Wednesday.


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