International Rectifier (IR) has announced that its board of directors unanimously determined that the unsolicited, non-binding proposal by Vishay Intertechnology to acquire all of the outstanding shares of International Rectifier for $21.22 per share in cash is not in the best interests of IR and its shareholders. The board reviewed the proposal with the assistance of its financial and legal advisers Goldman, Sachs & Co. and Fried, Frank, Harris, Shriver & Jacobson LLP, respectively.
Richard J. Dahl, Chairman of the Board of International Rectifier said: “Vishay’s proposal significantly undervalues the company and its future prospects when compared to the shareholder value realizable under our recently adopted strategic plan. On August 1, we announced that the company had successfully completed the restatement process of prior financial periods. The company has also added considerable strength and depth to its senior management team during the past year and is poised to enhance its competitive position in the marketplace.
“The Board believes that the proposal by Vishay does not value the company and its future prospects appropriately. In our judgment, IR shareholders will be better served by allowing management to move forward with its strategic plan. We believe that IR’s valuation is still under the cloud of legacy issues. The Board and our management team look forward to executing the exciting opportunities available to our Company and to delivering this value to our shareholders,” concludes Mr. Dahl.