(Adds details, background)
AMSTERDAM Nov 14 Chip equipment maker Applied
Materials (AMAT.O) and private equity firm Francisco Partners
have walked away from an approach to buy key units of Dutch
rival ASM International (ASMI.AS).
"Applied Materials Inc and Francisco Partners ... will not
pursue their interest in making such an offer," ASMI said in a
brief statement on Friday.
The Bilthoven-based company had previously rejected the bid
of up to $800 million for its front-end business, which would
have effectively turned ASMI into a holding company for its 53
percent stake in ASM Pacific Technology Ltd (0522.HK).
Analysts had already considered the deal dead due to the
credit crisis and a dramatic drop in sector valuations as a
result of a deteriorating outlook for the chip market, which is
(Reporting by Niclas Mika; Editing by David Holmes)