The way it looks to me, most of the IP and potential is in SILI, not Vishay. I purchased shares of SILI, knowing that Vishay owned a majority stake. I did so for the following reasons:
1. SILI is a company experiencing incredible growth. Vishay is experiencing this growth only through its ownership of SILI as far as I can tell.
2. Legal, fiduciary responsiblity should require that Siliconix executives and those with controlling interest act in the best interest of the shareholders of Siliconix, not Vishay. I assumed, possibly mistakenly, that Siliconix executives would act with fiduciary responsibility in mind. I too am very disappointed at what could be a purposeful attempt to keep the stock price low. I believe that if this is the case, such action would be illegal, and the only benefit would be to Vishay as a move to acquire the remaining shares, not Siliconix shareholders.
3. I assumed, again maybe mistakenly, that if Vishay purchased the remaining shares of Siliconix, they would do so at a premium assigned by the market in the context of fiduciary responsiblity. It seems to me that the market is unwilling to assign SILI a reasonable premium, possibly due to the majority interest that Vishay has.
I'm disturbed by the recent divergence of SILI and VSH. I have generally characterized shareholder legal action as a bunch of whining over poor investments, but I cannot explain the inability of SILI to rally without questioning the legitimacy of Vishay's and Siliconix executives' actions. If it is true that Siliconix executives get stock options in VSH, not SILI, then I would consider that an inappropriate conflict of interest.
Mike |
