VLSI OKs Philips’ Sweetened Offer

Philips Electronics, Europe’s largest semiconductor maker, raised its offer for VLSI Technology Inc. by 24%, winning VLSI management approval for the $1.27-billion purchase. Ending two months of wrangling, Philips agreed to buy all VLSI shares outstanding for $21 each. Philips also will assume about $161 million in debt. San Jose-based VLSI had rejected Philips’ March 5 bid of $17 a share, prompting a Philips tender offer and threat to oust VLSI’s board before the companies began negotiating last month. VLSI shares rose $1.88 to close at $20.75 on Nasdaq.