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

To: orkrious who wrote (5367)	3/2/1999 8:07:00 AM
From: Dawgfool	Read Replies (2) \| Respond to of 6565

I have read the last 40 posts and following are my stream of conciousness thoughts. First, the Philips offer likely didn't include a timeframe for response (too easy to just let time expire, if BOD is not interested). Therefore they have ample time to consider this offer, try to generate other offers, or try to bump this offer higher. Second, companies like Philips do not "always" offer low and expect to go up. There are many bidding strategies, only one of which says start low. That's the one where you want to put the company in play but don't really care whether you get it. I don't believe that is Philips strategy. Therefore, I suspect they believe that they think their offer could be a winner- probably because they have sweetened it in some way for management and the BOD with employment contracts, seats on Philips Board for a key member or two. Third, the decision is in not in the hands of the arbs, it is in the hands of the Board. If they accept this offer, arbs will be happy. If they reject for another offer, arbs will be happy. If they reject, for legally defensible reasons(and they do have legal representation), arbs may be unhappy but there is little they can do. The price offered by LSI last summer is irrelevant, as best as I can tell that was 8 months ago and may as well have been 8 years ago. In my relatively uninformed opinion one of two outcomes is probable. 1) They like aspects of the Philips deal (personal or otherwise) and they take it or negotiate a higher price (for appearances or fiduciary responsiblities) and take it. 2) They get a 2nd bonafide offer that they like better and take it. Because they have entertained discussions with buyers and developed lists of potential partners previously, the probability of VLSI being sold are very high. Board has already been put on notice that there are advantages of deep pockets partners, and Philips was on the list. You can't turn back the clock now. Good luck, its going to fun to watch.