ASM Rejects Applied Materials Bid, But Open to Talks

ASM International (ASMI) over the weekend rejected an offer from Applied Materials (AMAT) to acquire two of the company’s businesses. The company said that it “carefully considered” the offer, but that it “has no interest” in selling the two units, which include its Atomic Layer Deposition business and its Plasma Enhanced Chemical Vapor Deposition segment.

ASMI said the two units are “at the heart of ASMI’s strategy, and the key drivers underlying ASMI’s objectives to achieve significant growth in revenues and operating margins by 2009.” But the company also said that it is “willing to explore and discuss” with Applied “whether any alternative arrangements” between the two companies could be pursued.

And in fact, Applied said in a statement said that “it has a strong interest in meeting with ASMI early this week to discuss possible transactions,” and that it is possible they two sides “could reach final agreement and an executed transaction in a matter of weeks.”

All of this is making ASMI holders happy: the stock today is up $2.59, or 9.6%, to $29.70. AMAT is up 15 cents, at $20.24.