Earlier this week, Atmel said it considered Microchip Technology Inc's $3.42 billion cash-and-stock proposal superior to an offer from Dialog.
Dialog's stock is still a far cry from levels before it announced the deal with Atmel in September. Its shares have lost more than 40 percent since the takeover was announced.
Dialog has warned its results would suffer due to a slower smartphone market, which is expected to continue this year.
Dialog is heavily depending on Apple Inc and Samsung Electronics, which use its chips in their smartphones.