On the eve of a shareholder vote that could strengthen the hand of a hostile suitor, International Rectifier Corp. said sales of its power management chips in the last quarter were likely at the high end of its forecast.
The company said Thursday it was sticking to its projection that revenue for its first quarter, ended Sept. 30, would grow 7 percent to 9 percent from the previous quarter, and it now expects results to be on the high end of that range. Analysts polled by Thomson Reuters on average expect revenue of $220 million for the quarter, within the company's range.
International Rectifier of El Segundo again urged shareholders to ignore a $23 a share tender officer from Vishay Intertechnology Inc. It also urged them not to vote three Vishay-backed candidates to the board at Friday's annual meeting.
"We continue to be confident that our strategic roadmap will deliver greater value for our shareholders than the uncertain $23 Vishay proposal," said Chief Executive Oleg Khaykin in a statement.
Malvern, Pa.-based Vishay last month launched a tender offer to buy International Rectifier in a deal valued at about $1.7 billion. International Rectifier's board had rejected that offer and an earlier bid of $21.22 per share.
Vishay has said it's willing to increase the offer if International Rectifier can show a higher price is justified. On Wednesday, Vishay sent another letter to shareholders, warning it would not pursue the tender offer, which expires Oct. 27, if shareholders did not vote its slate to the board.
"They are not committed to Vishay's offer; they are committed only to fair consideration of any and all proposals to maximize stockholder value," said Vishay in its letter.
International Rectifier shares were up 40 cents, or 2.5 percent, to $16.81 in morning trading on the New York Stock Exchange.
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