Zilog acknowledges acquisition proposal from Universal Electronics, filing from Riley Investment

By Jennifer Chiou

New York, Jan. 18 - Zilog, Inc. said it received an unsolicited acquisition proposal from Universal Electronics, Inc. and also announced that it received a copy of the schedule 13D filed by Riley Investment Management LLC, the financing partner referred to in Universal Electronics' Jan. 11 letter.

Zilog said that its board will review the proposal and will respond formally to Universal Electronics.

According to the filing, Universal Electronics said in the letter that its offer expires 10 days after Jan. 11, adding that if Zilog accepts the offer in that timeframe, Universal Electronics would prepare a letter of intent to set the principle terms of the acquisition.

The company's board will also consider alternative courses of action, including continuing with the implementation of Zilog's current business plan.

Riley Investment Management reported that it beneficially owns 1.05 million shares, or 6.2%, of Zilog's outstanding stock.

Zilog noted that it has retained LRG Capital Corporate Advisory Group, LLC as financial adviser.

Based in San Jose, Calif., Zilog is a supplier of eight-, 16- and 32-bit microcontroller and microprocessor "system-on-a-chip" products.

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