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Technology Stocks : Semi Equipment Analysis
SOXX 324.89-1.1%4:00 PM EST

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To: sixty2nds who wrote (28181)1/24/2006 11:24:27 AM
From: sixty2nds   of 95689
 
08:34 KLAC KLA-Tencor: Withdrawing AUGT bid a slight negative in the long-term - Thomas Weisel (51.77 )

Thomas Weisel notes that KLAC withdrew its $220 mln bid for AUGT on Monday. The firm says that it appears KLAC did not want to assume the risk of a hostile takeover battle for AUGT, a course that might have triggered the departure of key personnel and disrupted operations in a market less than critical to KLAC's growth strategy. With the AUGT target now lost, they expect that KLAC will nonetheless expand into the packaging inspection market by leveraging existing KLAC technology in what will amount to a lower-cost, lower-risk route to related segment growth. The firm says that the near-term impact will be neutral for the co, but there will be a minor negative impact in the long run as small, but growing competitors are emerging.
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