Zarlink's shares on the Toronto Stock Exchange were up slightly today on the news, trading at $3.560, about where they have been since Microsemi issued its letter last month.

Zarlink officials couldn't be reached for comment this morning.

Zarlink is a fabless semiconductor design company which had net income of US$69 million on annual revenues of US$230 million for the fiscal year that ended March 25. It was created in 2001 when unified communications systems maker Mitel Corp. shed several divisions. By comparison, in its last quarter alone Microsemi had sales of US$207 million.

In its news release, Microsemi said it will offer to buy all of Zarlink's outstanding common shares, together with associated rights outstanding under the Canadian company's shareholder rights plan.

It would also pay $1,367.35 per $1,000 for all of Zarlink's outstanding 6 per cent unsecured, subordinated convertible debentures, which mature Sept. 30, plus accrued and unpaid interest.