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

To: Richard P who wrote (6018)	3/28/1999 9:27:00 PM
From: Linda Kaplan	Respond to of 6565

No problem. Thanks for trying, though. --Linda

To: Richard P who wrote (6018)	3/28/1999 11:32:00 PM
From: Linda Kaplan	Read Replies (1) \| Respond to of 6565

Headline: VLSI opens books to potential bidders-sources ====================================================================== By Robin Sidel NEW YORK, March 28 (Reuters) - Computer chipmaker VLSI Technology Inc. (NASDAQ:VLSI) is providing confidential financial information to potential buyers, but negotiations to give similar data to hostile bidder Philips Electronics NV (AMS:PHG) broke down over the weekend, sources familiar with the situation told Reuters Sunday. Talks with the Dutch electronics giant, which last week appeared to be moving forward, fell apart Saturday over terms of the proposed confidentiality agreement, said the sources, who spoke on condition of anonymity. The collapse of talks means the other potential bidders will get the chance to value VLSI based on internal information, while Philips must rely solely on data that has been released publicly. San Jose, Calif.-based VLSI declined to comment. A U.S. spokesman for Philips also declined comment. VLSI earlier this month rejected a hostile $777 million cash bid from Philips, saying the $17 a share bid was inadequate. VLSI said, however, it would explore alternatives and expressed a willingness to sit down at the bargaining table with Philips and other interested parties. VLSI believes it may receive higher offers if potential bidders look at its books. 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. In addition to launching the hostile bid, Philips has said it will seek to oust VLSI's board of directors. Investment bankers and attorneys for VLSI and Philips spent last week hammering out details of a confidentiality agreement and VLSI's board of directors held a special meeting Thursday to discuss the anticipated pact. But those discussions unexpectedly broke down after Philips refused to accept terms that called for it to delay the takeover attempt while it reviewed VLSI's books, the sources said. In the meantime, VLSI has signed confidentiality agreements with multiple other parties, some of which already have received access to confidential information, the sources said. The identities of those parties were not immediately disclosed, but rumored potential bidders include STM Microelectronics, International Business Machines Corp. (NYSE:IBM) and Texas Instruments Inc. (NYSE:TXN). Those companies have declined to comment on the speculation. VLSI has not set any deadlines for potential bidders and does not view the developments as an auction of the company, the sources said. They also did not rule out the chance that Philips and VLSI could resume discussions about a confidentiality agreement. Shares of VLSI have traded above the $17 a share bid on views the company will be sold at a higher price. Wall Street experts have been skeptical that other bidders would emerge and generally expect cash-rich Philips to win its target for about $20 a share, or $914 million. Copyright 1999, Reuters News Service