page not found on your link. meanwhile here's another article with a few tidbits that seemed new:
Headline: FOCUS-Philips to launch hostile bid for VLSI
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(combines takes, adds byline, trader quote para 4, background
para 5, 8, 11-12)
By Robin Sidel
NEW YORK, March 4 (Reuters) - Netherlands-based Philips
Electronics NV (AMS:PHG) said Thursday it would formally launch
a $777 million hostile takeover bid for California chipmaker
VLSI Technology Inc. (NASDAQ:VLSI) on Friday.
The Philips statement came one day after VLSI said it
needed more time to evaluate the unsolicited $17-a-share offer,
which was disclosed last week.
The news sent VLSI's stock up $1 to $18.375 on the Nasdaq
stock market on speculation that VLSI may eventually be sold at
a price above the Philips bid.
"This sets a floor (on the price). The (stock's) downside
is limited by having a good, strategic buyer," said one trader
of takeover stocks, who spoke on condition of anonymity.
Sources familiar with the situation told Reuters earlier
this week that Philips was preparing a hostile bid.
The tender offer will expire on April 1, Philips said.
In addition to taking the bid directly to VLSI shareholders
with a tender offer, Philips said it would ask VLSI to remove
its "poison pill" takeover defense, which would make it
prohibitively expensive for Philips to buy the company.
If VLSI does not remove the pill, Philips said it would
take steps to oust the VLSI board of directors and replace the
members with nominees who would allow its offer to proceed.
San Jose, Calif.-based VLSI could not immediately be
reached for comment on the latest development. Late Wednesday,
the company said its board would meet March 23 to consider the
Philips bid after an evaluation by a team of financial
advisers.
Philips said it was encouraged by VLSI's statement on
Wednesday that it had an "open mind" about the offer.
"However, given the compelling nature of the offer and
Philips' desire to quickly complete such a mutually beneficial
transaction, Philips has decided to take its offer directly to
VLSI shareholders," the Dutch company said.
VLSI is considered vulnerable to the hostile bid because
its six-member board is up for reelection at the company's
annual meeting this spring.
Philips has said it intends to use VLSI as a platform for
expansion in North America. VLSI makes integrated circuits for
products such as cellular phones.
Copyright 1999, Reuters News Service |
