Vishay Intertechnology Inc. on Wednesday raised its all-cash offer for power management chip maker International Rectifier Corp. and said it plans to take the $1.7 billion bid directly to shareholders.
Vishay raised its bid to $23 per share, from the $21.22 it offered in August, and plans to begin a tender offer for the company's shares soon. The new offer, up from Vishay's initial $1.6 billion bid, values the company at a 9 percent premium to International Rectifier's closing price on Tuesday.
International Rectifier last month rejected the previous offer as too low and not in shareholders' best interests. The El Segundo company had not released a reaction to the revised bid this morning.
Malvern, Pa.-based Vishay also notified International Rectifier that it intends to nominate three candidates for election to International Rectifier's board at the company's annual meeting next month.
"From the outset, it has been our strong preference to work together with International Rectifier and its Board of Directors to negotiate a mutually beneficial transaction," said Chief Executive Gerald Paul in a statement. "Despite our best efforts, International Rectifier has flatly refused to discuss a business combination with us and to explore the benefits of such a combination. We are confident that the stockholders, deciding for themselves, will find our increased all-cash proposal to be compelling."
In a statement late Wednesday, International Rectifier urged shareholders to take no action on the deal until it has had the opportunity to review the latest proposal.
There has been bad blood between the two companies ever since Vishay began questioning the value of a unit it acquired from International Rectifier last year.
International Rectifier shares closed up were up $1.47, or 7 percent, to $22.57 in Wednesday trading on the New York Stock Exchange. The company makes semiconductors and similar components that are used in everything from satellites to video game systems.
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