VLSI Agrees to Discuss Talks

VLSI Technologies Inc. agreed to discuss negotiations it held with Royal Philips Electronics, whose $777-million hostile buyout offer last month for the custom chip maker was rejected as too low. “We look forward to working out a process for discussions with you concerning” negotiations, VLSI Chief Executive Alfred Stein wrote in a letter to Arthur van der Poel, chief executive of Philips’ semiconductor unit. The letters were in separate Securities and Exchange Commission filings. Philips, Europe’s largest consumer electronics maker, offered $17 a share in cash for VLSI, seeking the company’s high-performance chips to help improve its unprofitable cellular phone business. San Jose-based VLSI rejected the offer, saying it would pursue options that include selling to another company and negotiating with Philips. VLSI shares rose 19 cents to close at $19.69 on Nasdaq.