Philips and VLSI agree ceasefire in takeover battle

Philips and VLSI agree ceasefire in takeover battle
Tom Foremski
VLSI Technology and Philips Semiconductors have agreed to a cease-fire in Philips hostile bid for the company, signing an agreement that improves relations between the two companies.
Philips has agreed to a confidentiality and standstill agreement that will give it access to confidential VLSI corporate plans and data. Philips agrees not to acquire any additional VLSI shares prior to May 10 without VLSI approval. The Dutch electronics giant has also agreed to suspend its efforts in replacing VLSI’s board of directors.
The agreement could result in Philips increasing its $17 per share offer for VLSI based on the information VLSI will provide. VLSI has called the Philips bid inadequate and has invited offers from other companies. Philips wants VLSI as a key element in its North American expansion plans.

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