VLSI Technology Inc. has agreed to accept Philips Electronics N.V.’s hostile bid of $1.27 billion.
After being rebuffed earlier this year, Philips raised its bid for the computer chip maker from the orginal offer of about $776 million.
ZD Interactive Investor analysts say the deal makes sense for Philips because many of its other businesses are struggling. Philips absorbed Lucent Technologies Inc.’s 40 percent stake of a mobile phone joint venture, at a time when Philips’ consumer electronics business is showing lackluster performance.
The full story is posted at http://www.zdii.com.