Dutch electronics giant Royal Philips Electronics NV on Friday offered to acquire chipmaker VLSI Technology Inc. for more than $806 million, or $17 a share, in a move that would give it a platform to expand in the United States.
Shares of VLSI soared 44 percent, or $4.75, to close at $15.50, on the Nasdaq stock market. Philips shares fell 50 cents, to $69.62, on the New York Stock Exchange.
Philips is one of the world’s biggest electronics companies, with annual sales of $33.9 billion last year and 234,000 employees worldwide. It is a leading maker of television sets, picture tubes, lighting products and electric shavers.
VLSI, based in San Jose, Calif., makes custom chips for the wireless-communications, networking, consumer-digital entertainment and computing markets. It had 1998 revenue from continuing operations of $550 million and 2,200 employees worldwide.
In a letter to VLSI Technology’s board, Philips asked for a response no later than March 3.
