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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 (5984)	3/25/1999 10:01:00 PM
From: Ram Seetharaman	Read Replies (1) \| Respond to of 6565

No wonder VLSI is not hitting $ 20 yet! Thursday March 25 6:58 PM ET VLSI, Philips Seek Confidentiality Pact - Sources By Robin Sidel NEW YORK (Reuters) - Computer chipmaker VLSI Technology Inc. (Nasdaq:VLSI - news) and hostile bidder Philips Electronics NV Thursday edged closer to a key pact that could lead to a friendly transaction. Investment bankers and attorneys for the two companies were hammering out terms of a confidentiality agreement, which was expected to be signed within a few days, said sources familiar with the situation. The agreement will give the Dutch electronics giant access to confidential data about VLSI's operations. That information can often lead the buyer to revise its offer. Negotiations for a confidentiality agreement began several days ago after VLSI last week formally rejected an unsolicited $777 million takeover bid from Philips, but expressed a willingness to sit down at the bargaining table. The sources, who spoke on condition on anonymity, said they anticipated no major stumbling blocks for the confidentiality agreement. ''I think it should be done in the next couple of days,'' said one source. VLSI declined to comment. A U.S.-based spokesman for Philips also declined comment. Philips launched a hostile bid for San Jose, Calif.-based VLSI earlier this month after the target company spurned several overtures. Philips also is seeking to oust VLSI's board of directors in an effort to take control of the company. In rejecting the offer, VLSI said the $17 per share bid was inadequate. VLSI also beefed up its takeover defenses in an effort to ward off an unfriendly buyer. Shares of VLSI have traded above the $17 bid price for weeks amid Wall Street expectations that the company will be sold for a higher price. Although VLSI has said it has received expressions of interest from other parties, most industry experts believe Philips will wind up buying the company in a friendly deal. ''All along, (VLSI's) public comments have been conciliatory,'' said one takeover expert who spoke on condition of anonymity. Shares of VLSI slipped 19 cents to $19.375 Thursday on the New York Stock Exchange, Philips is eager to buy VLSI as part of a planned expansion in North America. VLSI makes chips used in wireless communications, computer networking and consumer digital entertainment. Merger experts have speculated that cash-rich Philips may pay as much as $20 a share or $914 million for VLSI in a friendly deal. However, others are skeptical that Philips would be willing to pay that much without a competing offer from another company.