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UPDATE 1-Applied Materials walks away from ASMI unit offer
November 14, 2008 / 7:40 AM / 9 years ago

UPDATE 1-Applied Materials walks away from ASMI unit offer

(Adds details, background)

AMSTERDAM, Nov 14 (Reuters) - 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 facing overcapacity. (Reporting by Niclas Mika; Editing by David Holmes)

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