You Heard It Here First: Verigy Gets Higher Offer (VRGY, ATE, LTXC)

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Verigy Ltd. (NASDAQ: VRGY) is one of those companies that few traders and investors follow in the world of semiconductor testing systems and solutions.  It is in the midst of a buyout and our prediction is apparently coming true of a higher price.  We said “Verigy Could Fetch More” back on December 6 and this morning shares are higher after it announced the receipt of a revised unsolicited proposal from ATE for $15.00 per share in cash.  This is going to pit the Advantest Corporation (NYSE: ATE) acquisition against another proposal already on the table with LTX-Credence (NASDAQ: LTXC).

The prior deal was listed as $12.00.  Where this gets interesting is that Verigy said that its board of directors IS NOT MAKING A DECISION on the revised Advantest proposal at this time, and it anticipates continuing to engage in discussions with Advantest.

It further noted, “There can be no assurances that any transaction will result from the revised Advantest proposal or Verigy’s discussions with Advantest.”

As of now, Verigy continues to recommend and support the LTX-Credence merger agreement to its shareholders.  It is also not withdrawing its recommendation to Verigy shareholders.

Verigy shares are now up 8% at $13.65 in very active trading.  LTX-Credence shares are down another 5.4% at $7.37 and Advantest shares are up 0.5% at $22.49.

If Advantest really truly wants Verigy, maybe it should consider taking on LTX-Credence as well.

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JON C. OGG