General Semiconductor Rejects Vishay's Acquisition Proposal
The board of directors of General Semiconductor Inc. (Melville, NY) announced a unanimous decision to reject the unsolicited proposal made by Vishay Intertechnology Inc. (Malvern, PA) on April 2, 2001 to acquire General Semiconductor through an exchange of 0.5 new Vishay shares for each outstanding share of General Semiconductor.
General Semiconductor believes that the proposed acquisition is not in the best interests of the company, its stockholders, employees and other consituencies. General Semiconductor reports that it is committed to maximizing long-term shareholder value, and maintains that Vishay's proposal does not reflect the value of General Semiconductor's strong global franchise, market position and portfolio of new power products.
Ronald Ostertag, chairman, president and CEO of General Semiconductor, sent the following letter on behalf of the board to Vishay:
April 18, 2001
Dr. Felix Zandman
Chairman and Chief Executive Officer
63 Lincoln Hwy
Malvern, PA 19355
Dear Dr. Zandman:
Today, at its regularly scheduled meeting, the board of directors of General Semiconductor Inc. considered your letter of April 2, 2001 expressing interest in a business combination with General Semiconductor. After careful consideration, and a review of your proposal with our financial and legal advisors, the board has unanimously determined that your proposal is not 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