August Technology Takeover Heats Up
Apr 06, 2005
The three-way takeover battle for August Technology Corp. heated up Tuesday after capital equipment provider KLA-Tencor Corp. reiterated its $205 million bid and said it already has a 4.2 percent stake in its smaller rival.
The announcement comes one day after August said it entered into a confidentiality agreement with Rudolph Technologies Inc. to consider an offer while its merger with Nanometrics Inc. remains pending.
"KLA-Tencor noted with interest the announcement that Rudolph Technologies has entered into a confidentiality agreement with August, and regards this as a positive sign that the August board of directors is willing to enter into discussions that may deliver greater value to August's shareholders than its pending transaction with Nanometrics," the company said in a statement.
Nanometrics and August announced plans for a stock swap in late January that values August at $7.90 per share. Rudolph then came in with an offer to spend $11.50 per share in cash for August. KLA-Tencor offered $11.50 in cash, and again reiterated its willingness to consider a stock deal.
"KLA-Tencor continues to have the highest regard for August Technology and its employees, and we believe that the acquisition of August Technology by KLA-Tencor serves the best interests of our respective shareholders and customers," said KLA-Tencor President and CEO Ken Schroeder in a statement.