Vishay (VSH) May Be Willing To Raise Offer for International Rectifier (IRF) Beyond $23

October 6, 2008 8:41 AM EDT

Vishay Intertechnology (NYSE: VSH) said while it believes its $23 per share offer for International Rectifier Corporation (NYSE: IRF) represents full, fair and immediate value it would be willing to improve its offer if International Rectifier demonstrate to Vishay that a further price increase is justified.

From the Statement:

""We continue to believe our $23.00 per share cash offer represents full, fair and immediate value for International Rectifier stockholders. We also continue to believe that our premium offer is far superior to what International Rectifier could hope to achieve on its own in the foreseeable future through execution of its three-year turnaround 'roadmap' that is, as a leading independent research analyst recently described it, 'too aggressive' and 'an optimistic outlook indeed.'(1) We remain highly skeptical about the dramatic improvement reflected in International Rectifier's most recent business plan, which was announced shortly after we publicized our initial acquisition proposal. Nonetheless, if International Rectifier can, through good faith negotiations, demonstrate to Vishay that a further price increase is justified, Vishay would be willing to improve its offer. In this regard, Vishay would seek to obtain substantiation of International Rectifier's new business plan, particularly the $60 million reduction in cost of goods sold within two years and the projected substantial increase in revenues and gross margin."

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