Frivolous lawsuits such as the one described below are unconscionable in my opinion. This type of action epitimizes the term "ambulance chaser". Milberg Weiss doesn't note in their press release that Siliconix (SILI) traded in a range of 16.20 to 37.54 from Dec 2000 to Jun 2003 (a full 31 months), and spent a good part of that time in the 20s. They say "This price represents a discount of approximately 11% from Siliconix's 52-week average of $39.20, and a substantial discount to its 52-week high of $59.62." Gee, one would think that SILI Shareholders would be happy to get an offer that was about 25% above the closing price the day before the offer. Instead, some ambulance chaser complains that the offer wasn't above the 52 week high (which would have represented approximately a 100% premium), or that Shareholders are due a price where SILI traded for only a few months last year. Unbelievable. They are basically saying: Let's blame Vishay for Siliconix's stock price being too low. It doesn't have anything to do with the stock market or Siliconix's fundamentals or fact that someone paid too much for SILI when it briefly traded over $50. VSH is just taking advantage of those poor SILI Shareholders.
This is the second company that Vishay has offered to buy in the last couple of months (the other was SISI). Maybe VSH has a thing for stocks with tickers SI_I lol Actually, I think that VSH sees the value in some semiconductor companies, but that doesn't mean that they are responsible for the low stock prices. I guess this means that if the value of someone's house goes down, it is reasonable for the owner to sue a buyer because they didn't offer enough. lol
Milberg Weiss Announces the Filing of a Class Action Suit Against Siliconix, Inc. and Vishay Intertechnology, Inc.
Monday March 7, 1:00 pm ET
NEW YORK--(BUSINESS WIRE)--March 7, 2005--The law firm of Milberg Weiss Bershad & Schulman LLP announces that it has filed a class action lawsuit on behalf all public common stock holders of Siliconix, Inc. ("Siliconix" or the "Company") (Nasdaq:SILI - News) seeking to prevent Siliconix's majority shareholder, Vishay Intertechnology, Inc. ("Vishay") (NYSE:VSH - News), from using its controlling influence to force Siliconix minority shareholders to sell out their shares at a price that is grossly inadequate and unfair.
The action is pending in the Court of Chancery of the State of Delaware against the Company, King Owyang, Hanspeter Eberhardt, Glyndwr Smith, Timothy V. Talbert, Thomas C. Wertheimer, and Vishay ("Defendants").
The complaint alleges that Vishay has made a tender offer to exchange 2.64 shares of Vishay common stock for each outstanding share of Siliconix stock, an offer valued at approximately $34.98 per Siliconix share (the "Exchange Ratio"). This price represents a discount of approximately 11% from Siliconix's 52-week average of $39.20, and a substantial discount to its 52-week high of $59.62. Following the tender offer, Vishay intends to effect a merger of Siliconix with a subsidiary of Vishay (the "Merger").
The Complaint further alleges that Vishay is trying to take advantage of the fact that the market price of Siliconix stock does not fully reflect the progress and future value of the Company, that Vishay's offer has been dictated by Vishay to serve its own interests and that Vishay seeks to force Siliconix's minority shareholders to relinquish their Siliconix shares at a grossly unfair price and that such action constitutes unfair dealing. |
