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

To: Maui Jim who wrote (5933)	3/23/1999 6:35:00 AM
From: Linda Kaplan	Read Replies (1) \| Respond to of 6565

Headline: VLSI (NASDAQ:VLSI) invites Philips (AMS:PHG) to begin talks ====================================================================== AMSTERDAM, March 23 (Reuters) - Philips Electronics NV said on Tuesday it had received a letter from U.S. chipmaker VLSI inviting the Dutch firm's representatives to begin talks with the U.S. firm's counterparts. The Dutch firm has launched a $17 per share bid for VLSI which the latter said last week was insufficient. "In response to your letter, we will look forward to working out a process of discussions with you concerning these matters. The most effective way to establish this process is to have your lawyers and/or investment bankers contact our counterparts," VLSI's Chief Executive Al Stein wrote in the letter to Arthur van der Poel, head of Philips Semiconductors. A Philips spokesman said Philips' bankers and lawyers, Credit Suisse First Boston and Salomon and Cromwell, had initiated contact. Stein's letter, filed with the Securities and Exchange Commission, was in response to Philips' comments last Friday that it was "encouraged" by VLSI's decision to explore strategic alternatives, possibly including negotiations with Philips. Philips is considering sending a delegation as early as this week to California. A Philips spokesman said that remained an option, but there was no schedule yet. Philips announced its intention to buy VLSI in late February. Its bid valued VLSI at $777 million. Earlier this month it began a tender offer for the firm, but VLSI's shares are currently trading 16 percent higher than the $17 Philips has offered. VLSI has also launched and tightened a poison pill defence, which Philips is challenging in court. The defence would involve the issue of a flood of new VLSI shares if any new shareholder takes a stake of 10 percent or more. VLSI has Morgan Stanley and Hambrecht & Quist LLC as its advisors. fax +31 20 504 5040, amsterdam.newsroom@reuters.com)) Copyright 1999, Reuters News Service