MALVERN, Pa. (AP) -- Semiconductor maker Vishay Intertechnology Inc. said Monday it is willing to increase its $23-per-share offer for International Rectifier Corp. if the power management chip maker can demonstrate that a higher price is justified.
Vishay urged International Rectifier shareholders to vote for its three independent director nominees at the company's annual meeting in October. The company said its $23-per-share offer is a fair one and a better premium than the company could achieve on its own.
"Nonetheless, if International Rectifier can, through good faith negotiations, demonstrate to Vishay that a further price increase is justified, Vishay would be willing to improve its offer," the company wrote.
Last month, Vishay began a tender offer to buy the El Segundo, Calif., company for a price that translates to about $1.7 billion. That came after International Rectifier's board unanimously rejected both the $23-per-share offer, and its earlier offer of $21.22 per share.
Vishay said its offer represents a 30-percent premium over International Rectifier's average closing price for the 30 trading days prior to its original acquisition proposal announced Aug. 14.
The tender offer expires on Oct. 27.
Shares of International Rectified rose $2.13, or 12.3 percent, to $19.50 in premarket trading while Vishay lost 2 cents to $6.