The public war of words between General Semiconductor, Inc.and Vishay Intertechnology Inc. escalated Wednesday over Vishay's proposed takeover offer of the company, with General Semiconductor accusing its suitor of coercion.
An open letter from General Semiconductor CEO Ronald Ostertag to Vishay CEO Felix Zandman noted that its board "carefully considered and, ultimately, rejected that proposal and sees no reason to reconsider their determination.
"Furthermore, we have spoken to most of our major stockholders, and they do support the Board's approach and its rejection of your proposal. Simply stated, your proposal was considered and rejected."
On Tuesday, Zandman issued an open letter to the board of General Semiconductor, warning that it was prepared to propose an alternate slate of directors to General Semiconductor's board who would be willing to consider the buyout offer.
That letter also mentioned the allegation that General Semiconductor's trench MOSFET devices infringe on Vishay's patents, and that Vishay would take "all required action" to protect those patents.
Today, General Semiconductor responded that, "your patent infringement allegation is disruptive and appears self-serving. We find the timing of this non-specific, unsubstantiated allegation and its inclusion in your letter regarding our rejection of your proposal an attempt to be coercive. We are not aware of any patent infringement issue."
The letter concluded that, "Our Board continues to be committed to maximizing value for its stockholders and acting in the best interests of General Semiconductor, its stockholders, employees and other constituencies."