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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (6755)	8/19/1998 10:39:00 PM
From: Katherine Derbyshire	Read Replies (1) \| Respond to of 10921

There have been persistent rumors about AMAT buying a litho company, probably SVG or ASML. While litho obviously adds to their product line, it's a totally different technology in which little if any of their existing expertise would apply. Meaning they'd need/want to buy a strong player, since they might not be able to turn around a weak player in a reasonable time, but the strong litho players are least likely to actually want to be acquired. AMAT's lack of litho expertise also makes a hostile takeover unlikely IMO, because too much of the top talent would be likely to leave for competitors. Nikon and Canon are both full-line optics/photography/lithography vendors. They are unlikely to sell just the litho piece, since it is hugely profitable and a technology driver. ASML has been making a good run at Nikon and Canon, and seems to be very happy with their prospects. I don't see ASML being too interested in a friendly takeover. What's in it for them? The same unsubstantiated rumor that has AMAT making a run at SVG also has SVG upper management creating conflicts at the last minute. I don't know enough about it to comment, but der Torossian is famous for being an independent thinker, and the two company cultures don't seem terribly compatible. UTEK, besides not being strong in leading edge litho, has a CEO (Art Z) who is even more of an individualist than SVG's. ISI has already been bought, by UTEK. So who's left? I think AMAT can probably get to $12B without litho, especially if they can dominate copper in the same way they currently dominate aluminum. Dominating copper is by no means a foregone conclusion, though, so that's probably a more strategically important goal than chasing a litho company. Katherine