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

To: patrick tang who wrote (6147)	4/8/1999 1:48:00 PM
From: Linda Kaplan	Read Replies (1) \| Respond to of 6565

Headline: FOCUS-Philips wins access to VLSI confidential data ====================================================================== By Robin Sidel NEW YORK, April 8 (Reuters) - Dutch electronics firm Philips Electronics NV (AMS:PHG) on Thursday began combing through confidential data of hostile target VLSI Technology Inc. (NASDAQ:VLSI) after the two companies finally agreed on terms for the process. The development marks the first time Philips has had access to VLSI's financial books and could result in a higher bid for the computer chipmaker. Philips last month launched a $777 million hostile bid for the San Jose, Calif.-based computer chipmaker. VLSI has urged shareholders not to tender their shares, contending the $17 a share bid was inadequate. The Amsterdam company is seeking to buy VLSI as a platform for expansion in North America. VLSI makes chips used in wireless communications, computer networking and consumer digital entertainment. VLSI stock has been trading above the $17 offer due to Wall Street expectations the company will eventually be sold at a higher price. VLSI last month opened its books to other potential bidders. Similar talks with Philips broke down about 10 days ago after the companies were unable to agree on terms. But those talks resumed on Monday and the two companies announced on Thursday that Philips would conduct at least two days worth of due diligence on VLSI. In return for receiving access to VLSI's books, Philips agreed for about a month not to buy any VLSI shares, start proceedings to oust VLSI's board of directors, or seek to call a special meeting of VLSI shareholders. The agreement also calls for VLSI to seek formal offers from Philips if it does the same for any third parties. In addition, Philips would be released from the pact if VLSI enters a transaction with another party or if another party makes an unsolicited bid for VLSI. Philips also extended its tender offer until May 10. VLSI stock dipped 25 cents to $19.19 on Nasdaq at midday. VLSI said it would hold its annual shareholders meeting on June 8. Copyright 1999, Reuters News Service