Philips Makes Offer for VLSI

Philips Electronics, Europe’s biggest semiconductor firm, offered to buy San Jose-based VLSI Technology for $777 million, hoping to gain a broader range of chips for electronic consumer products. Philips offered $17 in cash for each VLSI share, a 58% premium over Thursday’s stock price, after meeting with VLSI to discuss a combination.

On Friday, VLSI shares jumped $4.75 to close at $15.50 on Nasdaq. Philips eased 50 cents to $69.63 on the New York Stock Exchange.

VLSI Chief Executive Al Stein said he spoke with some board members and investors about the bid but declined to say when directors will meet. Philips asked for a response by Wednesday.