said its board will review
proposal to acquire the company in a stock swap, but the producer of power semiconductor components remained fairly tight-lipped in a brief statement responding to the offer.
Monday night, Vishay, a maker of electronic components and discrete semiconductors, offered one share for every two shares of General Semiconductor. Shares of General Semiconductor closed Monday at $9.30, and recently gained 65 cents, or 7%, to $9.95 on the
New York Stock Exchange
. Vishay lost 81 cents, or 4.3%, to $18.20, also on the Big Board.
Felix Zandman, Vishay's chairman and chief executive, sent a letter to Ronald A. Ostertag, the chairman, president and CEO of General Semiconductor, detailing the proposal. "In the current environment all industry participants will need to move aggressively to cut costs and to work creatively to preserve revenues," the letter said. "The complementary nature of our product lines should result in substantial operational and marketing synergies and provide natural opportunities for cost savings.''
Vishay, which is based in Malvern, Pa., also said it would be willing to discuss a transaction that would be either all cash or part cash and part stock. In its statement Tuesday, General Semiconductor, Melville, N.Y., said the board would respond to the proposal "in due course."
took a look at the possibility that Vishay might try to make some
acquisition moves in 2001.