I wish atmel would make more sense. It's all very well to say that $5/share "undervalues" the company, but it's been over a year since "The Market" valued Atmel at $5/share, and most of that year was before the economy in general tanked. "Transformation plans" are all very well and good, but these are tough times just to keep your sales/value/stock price constant, much less grow at significant rates. I don't know that being acquired by microchip would be a good thing, but it doesn't look like good things are likely otherwise either.
Of course, if the market keeps going the way it has been going, Microchip/On may not be able to afford the $5/share original offer. It would be sad if that were Atmels actual "plan."