Zilog Says Texas Pacific Cut Takeover Offer

Zilog Inc. said Texas Pacific Group cut its takeover offer by 20%, to $20 a share, because of declining revenue and earnings at Zilog, a Campbell-based a maker of specialized computer chips. Fort Worth-based Texas Pacific cut the price from $25 a share after Zilog disclosed that fiscal fourth-quarter sales and earnings will fall below the third quarter’s, which trailed year-earlier results. Zilog blamed the shortfall on slower sales by a key customer, South Korean television maker Samsung Electronics Co., as well as falling prices throughout the industry as chip makers compete for orders and amid a growing inventory. The adjustment in the offer will be sufficient to allow the takeover to proceed unless Zilog discloses further deterioration in its fourth-quarter performance. Zilog shares were unchanged at $19.19 on the New York Stock Exchange.