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Vishay ups bid for chip firm

September 11, 2008|From the Associated Press

Chip maker Vishay Intertechnology Inc. said Wednesday that it had raised its all-cash bid for power management chip maker International Rectifier Corp. and would take the $1.7-billion offer directly to shareholders.

Vishay raised its bid to $23 a share, from the $21.22 it offered in August.

International Rectifier had rejected the previous offer as too low and not in shareholders' best interests. A spokesman said Wednesday that the company had no immediate comment.

Vishay values the new offer at about $1.7 billion, up from $1.6 billion. The new bid represents a 9% premium to International Rectifier's closing price Tuesday.

Vishay said it planned to begin a tender offer for the company's shares "shortly."

"Our increased all-cash proposal provides International Rectifier's stockholders with an opportunity to realize significant premium value for their investment [in the company]," said Felix Zandman, Vishay's founder and executive chairman, in a statement.

He added that the combined company would offer customers a broader range of technology products.

Shares of El Segundo-based International Rectifier rose $1.47, or 7%, to $22.57. The stock has traded between $16.30 and $36.80 in the last year.

Shares of Malvern, Pa.-based Vishay climbed 6 cents to $8.20.

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