Vishay makes offer for International Rectifier
Last year, Vishay Intertechnology Inc. bought a key unit of El Segundo’s International Rectifier Corp.
Now it wants the whole company.
Vishay offered $1.6 billion Friday for International Rectifier, whose semiconductors help machines use less power and can be found in Sony’s PlayStation 3 video game console.
The deal values International Rectifier at $21.22 a share, 13% higher than Thursday’s closing price of $18.82. But investors think the target company may be worth more; they bid International Rectifier shares up $3.67, or 19.5%, to $22.49 in Friday’s trading.
Executives at the El Segundo chip maker declined to comment. In a statement, the company said its board would evaluate the offer.
Former Chief Executive Alex Lidow and two other high-ranking company officials left International Rectifier last year amid a probe of accounting irregularities, and its shares have fallen nearly 34% this year.
It remains one of the nation’s largest manufacturers of power-management products, with clients including Lockheed Martin Corp. and Hewlett-Packard Co.
The company sold its power control systems business to Vishay in 2006, saying it was jettisoning the unit to focus on high-performance semiconductors and other advanced power-management products.
Vishay’s stock fell 81 cents, or 8%, to $9.37 on Friday. Its shares have fallen about 18% this year.