SiliconBeat

If LogicVision intended to deter Virage Logic’s unsolicited offer to buy the company for $1.05 a share by adopting a shareholder rights plan commonly referred to as a poison pill on Tuesday, the tactic worked like a charm.

Daniel McCranie, chairman of Virage Logic’s board, sent LogicVision’s board a letter the very next day withdrawing the offer:

“As you know, it has been two weeks since our formal letter to you on December 2nd and over a month since our initial communication to you on November 10th regarding a potential acquisition of LogicVision, by Virage Logic. When submitted on December 2nd, our offer of $1.05 per share represented a premium of 114% to the closing price for LogicVision’s stock as of December 1, 2008.”

Complaining that LogicVision’s board has “no serious interest in engaging in discussions with us regarding our proposal, despite the obvious benefit to LogicVision’s stockholders,” McCranie cited the adoption of “a stockholders’ rights plan is a further indication that you are not willing to submit our proposal to LogicVision’s stockholders.”

“To date we have invested considerable time and resources in evaluating the prospective benefits and risks of an acquisition of LogicVision. We are no longer willing to continue to do so given the lack of any significant progress to date in advancing to substantive discussions. Accordingly, we are withdrawing our prior offer,” he wrote before sincerely signing off.

We previously posted about the effort made by LogicVision’s board after the offer first surfaced to alter the change-in-control agreements it had with its top executives to make it easier for them to get bigger payouts in case of a takeover.