CUPERTINO, Calif. (AP) -- Verigy Ltd., a maker of semiconductor test systems, said Monday that Advantest Corp. has made an unsolicited offer to buy it for a price of $12.15 per share.
Verigy, based in Cupertino, Calif., has already agreed to buy rival LTX-Credence Corp. in an all-stock deal that Verigy values at about $438 million. Upon closing, Verigy and LTX-Credence shareholders would own about 56 percent and 44 percent, respectively, of the combined company.
Verigy said the proposal from Advantest, a maker of semiconductor test systems based in Tokyo, was not superior to Verigy's proposed transaction with LTX. It said, however, that the proposal might lead to a superior transaction, so it agreed to enter talks with Advantest.
As of Monday, Verigy has 59.8 million outstanding shares, which would mean Advantest's proposal is valued at about $727 million.
Shares of Verigy surged $3.66, or 40 percent, to $12.80 in midday trading, while Advantest's stock fell 29 cents to $21.41 and LTX's dropped $1, or 12 percent, to $7.45.
LTX issued a statement arguing that its proposed merger with Verigy is in the best interest of both the companies and the shareholders, largely because the two companies have complementary, not similar, product portfolios. Besides, it added, an acquisition by Advantest would be subject to regulatory scrutiny.
"We believe that any proposal for Advantest to acquire Verigy would likely receive extensive regulatory reviews given the significant customer and product overlap which could lead to potential closing risk, or risk of restrictions in several countries," the company said in the statement, adding that its merger with Verigy would close much sooner.
Verigy, based in Cupertino, Calif., has already agreed to buy rival LTX-Credence Corp. in an all-stock deal that Verigy values at about $438 million. Upon closing, Verigy and LTX-Credence shareholders would own about 56 percent and 44 percent, respectively, of the combined company.
Verigy said the proposal from Advantest, a maker of semiconductor test systems based in Tokyo, was not superior to Verigy's proposed transaction with LTX. It said, however, that the proposal might lead to a superior transaction, so it agreed to enter talks with Advantest.
As of Monday, Verigy has 59.8 million outstanding shares, which would mean Advantest's proposal is valued at about $727 million.
Shares of Verigy surged $3.66, or 40 percent, to $12.80 in midday trading, while Advantest's stock fell 29 cents to $21.41 and LTX's dropped $1, or 12 percent, to $7.45.
LTX issued a statement arguing that its proposed merger with Verigy is in the best interest of both the companies and the shareholders, largely because the two companies have complementary, not similar, product portfolios. Besides, it added, an acquisition by Advantest would be subject to regulatory scrutiny.
"We believe that any proposal for Advantest to acquire Verigy would likely receive extensive regulatory reviews given the significant customer and product overlap which could lead to potential closing risk, or risk of restrictions in several countries," the company said in the statement, adding that its merger with Verigy would close much sooner.
