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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: otter who wrote (5287)	2/26/1999 12:13:00 PM
From: Linda Kaplan	Respond to of 6565

Headline: FOCUS-Philips (AMS:PHG) bids $776.9 mln for VSLI (NASDAQ:VLSI) ====================================================================== (changes dateline, adds Philips' comment, analyst, updates share price) AMSTERDAM, Feb 26 (Reuters) - Dutch Electronics group Philips (AMS:PHG) said on Friday it had offered to buy all the outstanding stock of semiconductor firm VLSI Technology Inc. (NASDAQ:VLSI) in a cash deal that could be worth about $776.9 million. Philips said it had offered to pay $17 per share for some 45.7 million VLSI shares outstanding -- a premium of around 60 percent on the stock's Thursday closing price. "We feel that the $17 is a fair price for the (VSLI) shareholders," Philips spokesman Jeremy Cohen said, adding "If you look at the reasons why we want to buy it, then it is a fair price." Philips said in a statement early Friday its bid was consistent with its strategy of looking for acquisitions to bolster its U.S. presence, adding it planned to make VSLI the "cornerstone" of its growth strategy for Philips Semiconductors. VSLI, based in San Jose, California, posted turnover from continuing operations of around $550 million in 1998 while Philips Semiconductors had full-year sales of 7.1 billion guilders ($3.56 billion). Cohen confirmed the acquisition, if accepted, would be financed from existing resources. He declined to comment on VLSI's likely response to the proposal or the atmosphere of preliminary talks. "We cannot really comment any further... the ball is in VLSI's court," he said. Analysts were upbeat on the potential acquisition, labelling it an excellent fit for Philips if it went ahead. "I think it's a perfect takeover and it's not even that expensive," said Rene Verhoef of Generale Bank's Oyens & Van Eeghen. "I've had a look at the (VSLI) balance sheet and the goodwill isn't actually that steep. Furthermore they've got a good portfolio of products and excellent growth potential." The news, which came out of the U.S. overnight, met a lukewarm response on the Amsterdam Stock Exchange, however. Philips shares traded flat over the session, standing down 0.39 percent at 63.50 euros by 1430 GMT. fax +31 20 504 5040, amsterdam.newsroom@reuters.com)) ($1=1.996 Guilder) Copyright 1999, Reuters News Service

To: otter who wrote (5287)	2/26/1999 12:41:00 PM
From: All Mtn Ski	Read Replies (1) \| Respond to of 6565

Philips is a huge company, and since the release said "no product overlap", I can assume part of the reason they want VLSI is to have a GSM chip offering. I don't know how stubborn Stein is, but hopefully someone over there is a bit miffed at the price and is calling VLSI's investment banker to look for a better deal. The deal is for something like 1.4X revenues? CHEAP! Are there other semi's that might have $1 billion to pay 2X revenues ($21-$22)? For how many "large shareholders" will this be a take-under? They would want a higher price. With a semi upswing perhaps in the cards, buying VLSI now would make a lot of sense for a larger company. The question is, who is willing to buck Philips and offer more for VLSI and will that offer come before Wednesday? If you are nimble, I guess it could make for a possible "Double dip", but I think I am going to hold out for a higher price. Tom

To: otter who wrote (5287)	2/26/1999 5:05:00 PM
From: Ram Seetharaman	Read Replies (3) \| Respond to of 6565

Otter, Pal, this VLSI takeover is far from over. Today after the massive Compaq (CPQ) selloff followed by Micron, LSI and others selling off, next week there will be some bargain hunting buying particularly in the techs. I was on a conference call with Dan Niles of BancBoston Robertson Stephens this afternoon around 1:30 P.M Pacific Time, and he still reiterates $ 60 price target for Compaq by year end, despite today's profit cut forecast. With that kind of scenario, VLSI is stupid to accept $ 17 offer.