International Rectifier Corp. said shareholders on Friday rejected a slate of directors proposed by Vishay Intertechnology Inc., which had launched a hostile takeover bid of the power management chip maker.
Investors at El Segundo-based International Rectifier elected three incumbents Jack Vance, Thomas Lacey and Mary Cranston to the board according to preliminary results from the company's annual meeting, the company said.
"We are very pleased by the support we have received and the dialogue and input from our shareholders," Chairman Richard Dahl said in a statement
The Malvern, Pa.-based semiconductor maker, launched its bid for the company in August and had a sweetened offer of $23 per share, or $1.7 billion, on the table.
However, International Rectifier had argued that the offer was still too low and that, in any case, Vishay lacked the financing to carry it out. Vishay, in turn, accused some of International Rectifier directors of acting to protect their own interests.
The two companies have been in a legal dispute that precedes the takeover. It stems from an International Rectifier division Vishay acquired last year. Vishay claims the unit had not met agreed upon performance projections.
"While we are disappointed by the outcome of today's annual meeting, we thank the significant number of International Rectifier stockholders who supported us in this process," Vishay said in a statement.
Vishay had said earlier it would not pursue the tender offer, which expires Oct. 27, if shareholders did not vote its slate to the board.
International Rectifier closed down $1.59, or 10 percent, to $13.97 on the New York Stock Exchange. Vishay fell 47 cents, or 10 percent, to $4.39.
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