EL SEGUNDO, Calif. (AP) -- Power management chip maker International Rectifier Corp. said Tuesday its board has unanimously rejected a sweetened, unsolicited buyout proposal from chip maker Vishay Intertechnology Inc.
Vishay raised its all-cash bid earlier this month, and said it will take it directly to International Rectifier's shareholders. The latest bid is worth $23 per share, or about $1.7 billion, up from the $21.22 it offered in August.
International Rectifier said the offer "significantly undervalues" its future prospects.
Vishay, meanwhile, said it is nominating three independent candidates -- Ronald M. Ruzic, William T. Vinson and Yoram Wind -- at International Rectifier's upcoming shareholder meeting, scheduled for Oct. 10. The meeting is the company's delayed 2007 annual shareholder meeting.
Vishay of Malvern, Pa., plans to begin a cash tender offer for International Rectifier "shortly."
Shares of International Rectifier fell 89 cents, or 4.2 percent, to $20.39 in morning trading as the broader markets sold off. In the past 52 weeks, the stock has traded between $16.30 and $36.80. Vishay shares, which touched a 52-week low of $7.01 earlier, recently declined 19 cents, or 2.6 percent, to $7.04.