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

To: Linda Kaplan who wrote (5518)	3/5/1999 1:26:00 AM
From: ed	Read Replies (2) \| Respond to of 6565

I should say Philips current strategy could invite a bidding war. Because the offered price is so low, and unreasonable, and the semi industry is now at a turning point and VLSI can easily hit $25 to $30 in the second half of the year by itself, so a reasonable investor will never consider sell its shares to Philips with $17, so Philips will never get the deal with $17. If Philips did not increase the offer quick, a second bidder will have enough time to jump into the bid, and a bloody bidding war will start. So, if Philips wants to close the deal quick, it should sweeten the bid quick , so that the deal will close quick and other bidder will not have a chance to jump in. Once a bidding war started, the expected price will be much higher, and the chance Philips can make the deal will be very remote unless an offer of $30 to $35 , instead of $17 or even $25. Now Philips has a chance at $25 and close the deal quick, but once the bidding war started, $25 will be the ground price..