Federal regulators are expected to block the merger of two publicly traded semiconductor companies as early as today, The Post has learned.
San Jose-based Integrated Device Technology reached a deal on April 30 to purchase PLX Technology for cash and stock totaling $330 million — and the two companies have been trying to win Federal Trade Commission approval since then.
“The commission is definitely going to challenge,” the source said.
The FTC is scheduled to meet this afternoon to consider an enforcement action. A second source said he believed the IDT—PLX merger was the first item on the agenda.
The businesses are the only two semiconductor companies making a specific kind of chip that carries information to other switches. End users are businesses that build racks of servers.
The merger partners have argued that entry into the space is easy, so it does not matter that the two only significant players are merging, the first source said.
IDT has previously extended its offer to PLX shareholders from Oct. 4 to Nov. 9.
PLX’s shares were down 3 percent in midday trading, to $5.08 per share. When the deal was first floated, its shares were trading at around $4 per share.
The FTC and IDT declined comment. PLX did not return calls.
jkosman@nypost.com