Vishay ends bid for Calif. firm

Malvern-based chip-maker Vishay Intertechnology Inc. announced today that it has ended its offer to buy International Rectifier Corp.'s outstanding shares for $23 apiece in cash.

Vishay said that it will return tendered shares to their holders.

Vishay said in a statement that it can't continue with its bid to buy the company "in the face of opposition from a board of directors that has refused to engage in any discussion with us regarding our offer."

"We regret that International Rectifier stockholders will not be able to participate in what would have been a compelling opportunity to create significant value for them," Vishay also said in its release.

The company declined further comment on the failed acquisition attempt.

In a statement issued late this morning, Richard J. Dahl, chairman of International Rectifier's board, said: "International Rectifier's board and management are pleased with the support and input we received from our shareholders. We are optimistic about the future growth opportunities for our business, and we will remain focused on executing our strategic roadmap to create value for our shareholders."

In August, Vishay began a tender offer to buy the El Segundo, Calif.-based company for about $1.7 billion.

International Rectifier, which manufactures semiconductors used to regulate the flow of power in personal computers, automobiles, and a wide range of household appliances, among other applications, said Thursday that it was still rebuffing Vishay's purchase offers.

International Rectifier argued that the offer substantially undervalued the company and that it had its own plan to substantially boost profitability over the next several years.

It had rejected Vishay's original $21.22-a-share bid when it was made in August.

The two companies have been in a dispute since last year, when Vishay spent $290 million to buy a business unit of International Rectifier. Subsequently, Vishay accused International Rectifier of misstating forecasts for portions of the business that it purchased, an accusation that International Rectifier denies.

International Rectifier shares were trading at $14.88, up $0.91 (6.51 percent) at midafternoon. Vishay shares were up $0.78 (17.77 percent) to $5.17.