Chipmaker Vishay abandons hostile $1.7 billion bid for International Rectifier

14 October 2008

On a day of bid withdrawals, semiconductor manufacturer Vishay Intertechnology Inc. joined trash collector behemoth Waste Management in ending its interest in acquiring a company whose management had been against the deal (See: Credit squeeze ends WM's $6.73-billion hostile bid for Republic).

While Waste Management mentioned unfavourable market conditions as the reason of its reticence towards acquiring rival Republic Services, Vishay cited the unwillingness of target International Rectifier's board of directors to "engage in any discussion with us regarding our offer."

"As we have consistently said, we cannot pursue our proposal in the face of opposition from a board of directors that has refused to engage in any discussion with us regarding our offer," Vishay said in a statement. "We regret that International Rectifier stockholders will not be able to participate in what would have been a compelling opportunity to create significant value for them.''

Vishay had lost the proxy battle last week, when three of its director nominees were rejected by International Rectifier shareholders in an annual meeting. The latter said that shareholders re-elected existing directors Jack O Vance, Thomas Lacey and Mary B Cranston over Vishay's nominees.

The results also showed that Vishay's proposed changes to Rectifier's bylaws, which concerned the timing of annual meetings and the re-election of board members whose terms expire at the end of the year, were also defeated, according to the company.

Reacting to Vishay's decision, International Rectifier chairman Richard Dahl said the company's board and management were "optimistic about the future growth opportunities for our business, and we will remain focused on executing our strategic roadmap to create value for our shareholders."