Philips to Make Hostile Bid for VLSI

Philips Electronics of the Netherlands said it would formally launch a $777-million hostile takeover bid for chip maker VLSI Technology Inc. The Philips statement came after San Jose-based VLSI said it needed more time to evaluate the unsolicited $17-a-share offer, disclosed last week. The news sent VLSI’s stock up $1 to close at $18.38 on Nasdaq on speculation VLSI may eventually be sold at a price above Philips’ bid. The tender offer will expire on April 1, Philips said.