SAN JOSE, Calif.-VLSI Technology Inc. last week rejected Royal Philips Electronics’ hostile
takeover bid to acquire all of the outstanding common shares of the company for $17 per share.
VLSI’s board said
the offer “is not adequate and not in the best interests of it stockholders, and therefore unanimously recommends
that VLSI’s stockholders reject the Philips offer and not tender their shares to Philips.”
Philips, which
announced its offer for VLSI March 5, has filed with the U.S. Securities and Exchange Commission a statement
seeking consent of VLSI shareholders to remove the VLSI board and replace them with nominees who would allow the
Philips offer to proceed.
VLSI said it would explore alternatives with a number of other companies. It has filed with
the SEC and will mail to stockholders a statement setting forth the company’s formal recommendation with respect to
the Philips offer.
