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Microchip Technology in talks to buy Microsemi - source

By Liana B. Baker

(Reuters) - Chipmaker Microchip Technology is in talks to buy Microsemi Corp, the largest U.S. commercial supplier of military and aerospace semiconductor equipment, a source familiar with the matter said on Tuesday.

The potential deal will value Microsemi at mid-$60s per share and a deal could be struck as early as this week, the source told Reuters.

Microsemi has a market capitalisation of $7.55 billion (5.4 billion pounds), based on the stock's Monday close.

The company was exploring its options, including a possible sale, after it received a takeover approach, Reuters reported last month.

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The deal, if finalised, comes amid a new wave of consolidation in the semiconductor industry.

Broadcom Ltd on Monday had called a proposal by U.S. semiconductor peer Qualcomm Inc for a new meeting to negotiate an increase to Broadcom's $117 billion acquisition offer "engagement theatre" aimed at dodging a takeover battle.

Arizona-based Microchip purchased fellow chipmaker Atmel in January 2016 for $3.42 billion in cash and stock.

Microchip and Microsemi did not respond to request for comments outside regular business hours.

The Wall Street Journal reported earlier Microchip is nearing a deal to buy Microsemi.

(Reporting by Mekhla Raina in Bengaluru and Liana Baker in San Francisco; Editing by Gopakumar Warrier)