Philips’ US banker Credit Suisse First Boston and law firm Salomon & Cromwell made the first official contacts after an invitation from Al Stein, VLSI’s chief executive.

Stein wrote to Arthur van der Poel, chairman of Philips Semiconductors, stating that “we will look forward to working out a process of discussions with you”, when the Dutchman appeared to soften his original threat to pursue an entirely hostile bid if VLSI did not open talks before early March.

Stein is nevertheless keeping Philips at arm’s length. His letter continued: “The most effective way to establish this process is to have your lawyers and investment bankers contact our counterparts.”

Philips had been seeking direct negotiations between the two companies’ boards.

VLSI has also tightened its `poison pill’ bid defence, which is being challenged by Philips in the US courts. The defence will flood the market with VLSI shares if any bidder or new shareholder secures more than 10% of the company.

Philips has extended its offer for chip maker VLSI Technology but not increased its offer from a current $777m valuation.

The two companies have been locked in bitter dispute during recent weeks with, most recently, VLSI refusing to disclose financial information to its hostile suitor, but offering the same data to other interested parties.

Extending the offer until Friday (16 April), Philips says that it has already received acceptances on more than 144,000 shares of VLSI common stock, although these represent less than 0.5% of the company. Many potential buyers have been holding back in the expectation that Philips would up its offer.

In the absence of a response from VLSI Technology’s board of directors, Dutch electronics giant Royal Philips Electronics says it is taking its $777m takeover offer directly to VLSI’s shareholders.

Philips launched the hostile bid after refusing to give VLSI more time to consider the $17-per-share offer, which represented a nearly 60% premium over VLSI’s book value just before Philips’ move.

On Wall Street, investors bid VLSI shares up to more than $18, expecting either a higher offer from Philips or a third `white knight’ company that may step forward with a more lucrative offer.

Philips is also demanding that VLSI’s board removes its `poison pill’ anti-takeover defence that could make it prohibitively expensive for Philips to acquire the company. If the board refuses, Philips threatens to get rid of the board after the company gains a majority position when enough shareholders have accepted the tender offer.

VLSI says it had scheduled a 23 March board meeting to discuss the offer. Philips says that is simply not acceptable.

In a press statement, it said: “Given the compelling nature of the offer and Philips’ desire to quickly complete such a mutually beneficial transaction, Philips has decided to take its offer directly to VLSI shareholders.”

VLSI Technology and Philips have moved a step closer to a friendly merger after weeks of warring over the Dutch electronics giant’s $777m bid.
VLSI has agreed to provide Philips with access to confidential financial and other information, having previously offered to open its books to just about any other bidder but Philips.

In return for the VLSI data, Philips has agreed to stop building its VLSI stake as part of a hostile takeover strategy.

The company has threatened to acquire a 51% stake in VLSI through a direct offer to shareholders and then sack the company’s existing board to dismantle its `poison pill’ defence.

VLSI has been forced to compromise as no other serious bidders have stepped forward so far to compete with the Philips takeover offer.

Philips Electronics NV says that 42.1 million of the outstanding shares in VLSI Technology Inc have been tendered in response to its $21 per share cash offer, giving the Dutch electronics company 91.5% of the San Jose, California-based ASIC and digital signal processor house. Philips will acquire the remaining shares of VLSI pursuant to a merger of KPE Acquisition with and into VLSI, and VLSI will thereby become an indirect wholly-owned subsidiary of Philips.

VLSI Technology appointed Tom Tokos as VP, general counsel and secretary. Mr. Tokos comes from Syquest Technology, where he served as the executive VP, general counsel and secretary. He was VLSI’s assistant general counsel and assistant secretary for two years from 1994 to 1996. His responsibilities will include supervision of all corporate and securities matters, litigation, commercial transactions, VLSI’s patent program, technology licensing and general legal matters.

New from Magna Projects and Instruments is the TR100 handheld battery-powered strain gauge indicator

The microprocessor-based unit is completely portable, weighing only 260g, and is environmentally sealed to IP65/Nema 4. The instrument has a tactile keyboard with dual range selection, peak/valley hold, auto-tare and off/on functions. The 4.5-digit LCD display has a built-in ‘low battery’ warning.

Full bridge strain gauge sensors up to 60mV/V sensitivity are accommodated, and the firmware allows single-pass calibration.

A bridge excitation voltage of 5V DC is provided, and bridges resistances of greater than 85ohm may be used.

Sypris Electronics has achieved the Software Engineering Institute’s (SEI) Capability Maturity Model Integration (CMMI) Level 3 rating

CMMI is an internationally recognised measure of an organisation’s engineering process maturity. The Software Engineering Institute (SEI), a US Department of Defense funded research centre at Carnegie Mellon University whose main purpose is to help organisations make measured improvements in their engineering capabilities, developed the Capability Maturity Model Integration (CMMI).

CMMI provides an industry standard model for developing and appraising an organisation’s engineering development process.

The CMMI ranks organisations according to a hierarchy of five process maturity levels, with a set of standards associated with each of the five levels.

A Level 3 rating means that an organisation has defined and institutionalised the use of standard organisational processes.

Sypris Electronics engineering organisation underwent a Standard CMMI Appraisal Method for Process Improvement (SCAMPI) Class A Appraisal led by Borland, an SEI-authorised Lead Appraiser.

The CMMI appraisal team, comprised of both Borland and Sypris Electronics personnel, reviewed more than 180 organisational process assets covering programme management, systems and software engineering disciplines and reviewed both direct and indirect evidence of 18 process areas across multiple appraisal projects.

The appraisal projects gave 35 presentations to the CMMI appraisal team and participated in interviews.

The involvement of process engineers, systems engineers, software engineers and program management from the different projects were critical in achieving the CMMI Level 3 goal.

‘This achievement is the culmination of a four year effort that demonstrates our engineering maturity and the value Sypris Electronics places on process improvement and support to our customers’, stated Bob Sanders, President of Sypris Electronics.

Well over 100 rigs worldwide and a vast number of FPSOs and FSOs rely on Hamworthy KSE equipment for essential functions and operational reliability

On Booth 1463 at OTC 2003 the company will demonstrate technologically advanced systems targeting crude, LPG and LNG markets. In partnership with Navion ASA, Hamworthy KSE has developed a new solution to the environmental problems related to VOC emissions from shuttle tankers. Following a year-long development project, Hamworthy KSE has brought to market a commercially viable VOC recycling system, incorporating proven components and technology.

Development has been focused on the effect of using blanket gas consisting of hydrocarbons produced from liquid VOC to maintain overpressure and keep the tank atmosphere below explosion limits.

VOC recycled to the cargo tank during unloading forms a hydrocarbon blanket which reduces the release of VOC from the crude by as much as 40%.

VOC emitted from the crude oil during loading is condensed in a process plant, and components such as methane and ethane are burned in a boiler to produce steam to be used for operation of the plant.

The solution developed by Hamworthy KSE and Navion reduces the environmental impact of crude transportation and handling by a factor of six (CO2 equivalent) compared with competing systems.

The plant is self-sufficient in terms of its energy requirement, and its complexity and cost have been reduced as a result of the lower emissions.

Minimisation of cargo shrinkage is reflected in added value for involved parties along the product chain.

Hamworthy KSE is a pioneer in reliquifaction and regasification systems for LNG carriers, with experience which is second to none.

The basis for the Hamworthy KSE system is the skid-mounted Moss RS cryogenic heat exchanger, which is specially developed for LNG applications.

By reliquefying boil-off gas onboard the vessel and returning it to the cargo tanks, the system delivers substantial economical and technical benefits.

The system supports the LNG market’s move towards diesel propulsion for LNG vessels, bringing cost benefits in comparison with dual-fired diesel engines.

The company is in discussion with leading players in the LNG market on reliquefaction projects, and is engaged in an ongoing qualification programme with ExxonMobil.

The company is also involved in studies and budget quotations with major customers for skid-mounted LNG regasification systems in the pressure range 40 to 130bar and capacity range 50 to 1000t/h.

There are three alternative HKSE systems steam based, seawater (alternatively with steam backup), and cascade.

They are designed to be located on an FSRU (floating storage regasification units) permanently anchored to receive LNG from carriers, or on SRV (shuttle regasification vessels) overlapping at unloading sites in order to ensure continuous send-out.

Both types of installation are under discussion with El Paso, Bergesen and GolarLNG, while Hamworthy KSE has a co-operation agreement with L Hoegh.

A dedicated version of Hamworthy KSE’s Svanehoj deepwell cargo pump is capable of handling cargoes at around -163C, and represents an extremely economical alternative to submerged deepwell pumps for LNG applications.

In addition, Hamworthy KSE’s Singapore office has received its largest-ever single order for engine room pumps, from Daewoo Shipbuilding and Marine Engineering in Korea.

The pumps are destined for three 138 000t LNG regasification vessels under construction for Exmar Offshore Company.

Hamworthy KSE met the technically demanding requirements of the oil and gas industry to secure the contract to design and supply LPG cooling and reliquefaction plants for a 135 000m3 LPG FPSO, built at the Kure shipyard of Japan’s Ishikawajima-Harima Heavy Industries and destined for the Sanha condensate complex.

The vessel is designed to receive mixed LPG gas from two production platforms, fractionate it onboard to separate butane and propane products, and chill each product stream for storage to await periodic transfer to LPG export tankers.

The scope of equipment supply includes large propane and butane cooling and reliquefaction plants, comprising skid-mounted units with screw compressors, together with 18 Svanehoj deepwell LPG cargo pumps and four booster pumps.

A SAW filter and resonator measurement facility in Milan has a team of RF engineers to support designers at all stages of their RF projects in the 300, 400 and 800MHz ISM bands

Murata Europe announces the opening of its SAW filter and resonator measurement facility in Milan, Italy. The measurement facility has a team of RF engineers to support designers at all stages of their RF projects in the 300, 400 and 800MHz ISM bands. The facility provides application notes, reference designs and testing services for customers’ own prototypes.

Murata told manufacturingtalk.com that customer evaluation of parts can take months, often because they may not have specific knowledge of the parts and can lack time and resources.

Murata’s RF facility welcomes specific enquiries concerning choice or application of Murata parts and offers customised solutions to speed up approval cycles.

The new facility will also work to create and issue application notes for Murata SAW products, including schematics, bill-of-materials (BOM) and PCB reference designs.

Development platforms will also be available, featuring some of the most popular RF ICs from different vendors, to help reduce customers’ development times.

‘I’m glad to announce that our SAW filter and resonator measurement facility is now fully operational,’ commented Massimiliano Premoli, the engineer responsible for the RF measurement facility located at Murata Elettronica (Italy).

‘There are so few RF engineers available in the market today that our customers often require post-sales support for SAW devices’.