General Semiconductor Reaffirms Rejection of Vishay Acquisition OfferApril 29, 2001 by Jeff Shepard
General Semiconductor Inc. (Melville, NY) has reaffirmed its rejection of Vishay Intertechnology Inc.'s (Malvern, PA) acquisition proposal.
General Semiconductor Chairman, President and CEO Ronald Ostertag sent the following letter to Vishay, in response to Vishay's letter from April 24, 2001:
April 25 2001
Dr. Felix Zandman
Chairman and Chief Executive Officer
63 Lincoln Hwy
Malvern, PA 19355
Dear Dr. Zandman:
We have received your letter of April 24, 2001 which restates the conditional proposal you made in your April 2, 2001 letter. Our Board of Directors recognizes its fiduciary duties to its stockholders and, in conjunction with advice from its outside financial and legal advisors, carefully considered and, ultimately, rejected that proposal and sees no reason to reconsider their determination. Furthermore, we have spoken to most of our major stockholders, and they do support the Board's approach and its rejection of your proposal. Simply stated, your proposal was considered and rejected.
In addition, your patent infringement allegation is disruptive and appears self-serving. We find the timing of this non-specific, unsubstantiated allegation and its inclusion in your letter regarding our rejection of your proposal an attempt to be coercive. We are not aware of any patent infringement issue.
Our Board continues to be committed to maximizing value for its stockholders and acting in the best interests of General Semiconductor, its stockholders, employees and other constituencies.
Ronald A. Ostertag
Chairman of the Board, President and
Chief Executive Officer