Verigy Ltd. (NASDAQ:VRGY) Shares Surges after VRGY’s Board Says $908 Million Offer from ATE is Superior

Verigy Ltd. (NASDAQ:VRGY) announced on today morning that its board has now "unanimously" determined that the proposed Advantest deal of $908 million offer for the company is "superior" to Verigy's proposed merger with LTX-Credence. The Company announced in a press release today that its Board of Directors has determined that the current merger proposal from Advantest (ATE) for $15 per share is a "superior offer" relative to VRGY's prior stock offer for LTXC. The Company has also notified LTXC of its intention to withdraw its recommendation to shareholders in favor of the LTXC-VRGY merger and recommend the Advantest offer instead. At the same time, Verigy is giving LTX-Credence until the close of business on March 25 (Friday) to deliver a counter proposal that would "cause the Advantest proposal to cease to constitute a 'superior offer.'" Morgan Stanley is acting as financial advisor to Verigy. In November, Verigy had agreed to buy LTX-Credence for about $424.4 million. There is no assurance that the proposed transaction with Advantest will be completed. Verigy does not have a unilateral right to terminate the LTX-Credence merger agreement in order to accept the Advantest proposal and enter into a definitive agreement with Advantest, even if LTX-Credence declines to make a proposal on or prior to the close of business on March 25, 2011 and the Verigy board thereafter formally withdraws its recommendation in favor of the proposed merger transaction between Verigy and LTX-Credence. Shares of the semiconductor testing company went up by 9.57% or $1.22 to $13.97. The stock has 52 week range of $7.48-$15.09. Volume of 5.53 million shares has been traded, above the daily average of 0.803 million shares. The market capitalization of the stock stands at $848.90 million with P/E of 55.57 and beta of 1.66. The Company offers a scalable platform for each of the categories of devices being tested: its V93000 Series platform, designed to test System-on-a-Chip (SOC), System-in-a-Package (SIP) and memory devices; its V6000 Series platform, which is the successor to the V5000 platform, tests both flash memory and dynamic random access memory (DRAM) devices, and its V101 platform designed to test devices, such as four, eight and 16-bit micro-controller units (MCUs) and consumer mixed-signal devices. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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