International Rectifier Corp. said it has refunded $30 million to Vishay Intertechnology Inc. in settlement of a dispute over the sale of a business division to the discrete and passive semiconductor vendor in 2007.
The agreement announced Wednesday (July 1, 2009) ended a bruising dispute between the two companies following Vishay's purchase of International Rectifier's power control systems business in April 2007 for approximately $286 million.

The purchase "propelled Vishay into the top ranks of discrete semiconductor manufacturers," the Malvern, pa.-based company said in its 2008 annual filing with the Securities and Exchange Commission.

However, Vishay later served up several complaints about the transaction, alleging that certain forecasts provided by International Rectifier were "unsupportable." Also in 2008, Vishay made a hostile offer to acquire International Rectifier, further muddying relationship between the two companies and complicating discussions to settle disputes arising from the PCS deal.

Vishay later withdrew its offer for International Rectifier after the management of the power, analog and mixed-signal semiconductor company rejected the unsolicited acquisition transaction.

In a statement, International Rectifier said it expects to "report a pretax gain for the fourth fiscal quarter ending June 28, in excess of $85 million due to recognition of the gain on the sale of the PCS business that had been deferred due to the previous uncertainties now resolved in the settlement."

The agreement between the two parties calls for Vishay to release International Rectifier from all claims related to the outstanding dispute. In turn, International Rectifier said it granted Vishay license to "certain additional technology" it may develop in future.

By: DocMemory
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