Chip maker Vishay Intertechnology Inc. on Monday said it has abandoned its $1.7 billion tender offer for International Rectifier Corp. in the face of continued opposition by International Rectifier's board and management and rejection by shareholders last week of its slate of directors.
"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," said Vishay in a press release.
Malvern, Pa.-based Vishay last month began a tender offer to buy the El Segundo maker of power management chips for $23 a share in cash after International Rectifier rebuffed earlier attempts at negotiations. Shareholders representing more than 75 percent of outstanding shares on Friday elected to the board International Rectifier incumbents who believed Vishay's offer was too low, rather than an alternate Vishay slate.
"We are 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," said Chairman Richard Dahl in a Monday response to the Vishay's move.
International Rectifier shares were up $1.28, or 9 percent, to $15.25 in morning trading on the New York Stock Exchange.
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