VLSI writes to Philips to negotiate acquisition plans

VLSI writes to Philips to negotiate acquisition plans
Tom Foremski
VLSI Technology has sent a letter to Philips Electronics inviting it to negotiations on Philips’ plans to acquire the US chip company.
Philips senior management may arrive in Silicon Valley later this week. The Dutch electronics giant has said that VLSI is crucial to its US expansion plans.
VLSI rejected Philips’ $17 per share offer as being inadequate and is seeking either a higher price from Philips or from another company. Philips’ hostile bid for VLSI includes an attempt to replace VLSI’s board of directors with its own nominees and it is seeking legal measures to force VLSI to dismantle poison pill provisions that will issue large numbers of new share if a shareholder acquires ten percent or more of the company.
VLSI set a record date of April 1, 1999 for the proposed consent solicitation by Philips, possible choosing that date to underline its recommendation to shareholders not to tender their shares to Philips.

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