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To: Mao II who wrote (7717)	10/2/2000 6:00:36 AM
From: Mao II	Respond to of 12662

ASML takes out SVGI. Hmmm. Monday October 2, 2:24 am Eastern Time ASML buys Silicon Valley Group in stock swap (UPDATE: Adds detail, analysis, changes dateline to Amsterdam) AMSTERDAM, Oct 2 (Reuters) - Dutch ASM Lithography NV (NasdaqNM:ASML - news) said on Monday it would be buying rival chip equipment maker Silicon Valley Group Inc (NasdaqNM:SVGI - news) for 1.8 billion euros ($1.6 billion) in stock, creating the world's largest maker of semiconductor lithography equipment. Under the terms of the agreement, SVG shareholders will get 1.286 ordinary ASML shares for each SVG share. Based on the closing prices on Friday, ASML said this represented a 58 percent premium to SVG shareholders. SVG holders will own about 10 percent of the combined company. ASML is the world's second largest maker of scanners and steppers, machines which map out the circuitry for computer chips, although it was quickly catching up on market leader Nikon . Now, in one fell swoop it has bought up the fourth largest maker and taken the number one spot. Proforma sales and net income for the 12-month period to June 30, 2000, were 2.55 billion euros and 255 million euros respectively. As well as rising scale, the deal will also add SVG's photoresist track and thermal product lines to ASML's offerings, but perhaps most significantly it should add one key customer. ``The most important part is that SVG is one of the suppliers of Intel. This should make it easier for ASML to get in...Intel has two key suppliers -- SVG and Nikon. ASML has tried to get in but it hasn't been easier as Intel tend to copy their factories,'' said Eric de Graaf, analyst at ING Barings, referring to the world's number one chip maker Intel (NasdaqNM:INTC - news). The deal, which has been approved by the boards of directors of both companies, would immediately add to ASML's earnings and is expected to close in the first half of 2001, ASML said in a statement. American depositary receipts of ASML closed at $32-5/16 in Friday's Nasdaq trading, down $1-1/2. Shares reached as high as $50-1/4 in early March and as low as $30-5/16 in May. Silicon Valley Group shares closed at $26-5/16 on Friday, up 15 percent, or $3-7/16. They reached as high as $33-3/4 in early March and a low of $20 last week. According to Dataquest, the lithography equipment sector is growing at a compound annual growth rate of 30 percent and is expected to reach 8.7 billion euros ($7.7 billion) by 2002. (1 euro equals US$0.88)