From a semibiz article highlighting chip m&a activity:
<< While most of these chip-merger agreements so far this year were "friendly,"
an unsolicited $777 million cash tender offer for VLSI Technology Inc. by
Royal Philips Electronics N.V. could turn hostile if directors at the San Jose
company do not go along with Philips' $17-per-share offer.
"We believe we have made a compelling offer [60% more than the trading
price at the time of VLSI Technology stock], and we will take our offer to
the shareholder is necessary," promises Scott McGregor, vice president of
the emerging business unit at Philips Semiconductors, based in Sunnyvale,
Calif.
Philips is making the bid for VLSI Technology to increase its U.S.
employment base -- especially in Silicon Valley -- and to gain key
technologies for system-on-chip designs, such as the digital-base band for
cellular phones, McGregor says.
Philips executives in Eindhoven, The Netherlands, are well aware, however,
that any takeover of VLSI Technology won't be successful unless it can
retain the bulk of its technical and marketing workforce. "We are interested in
VLSI's people and technology, and therefore it's important to make sure the
people think well about the merger," McGregor says. >>
So which part of what Mr. Market is telling McGregor doesn't he get ?
The big shareholders may listen and they may be enough to swing the deal, but the little shareholders ? Forget it. Among those are the people who are responsible for all the IP that VLSI has or will create. Its walking around inside those engineers heads. And walk is the operative term here. Signup queue for "People Skills 101" forms under the dollar sign... |
