Layers of Intrigue Surround Asyst's maneuverings

A resolution in the potential acquisition of semiconductor equipment company Asyst Technologies Inc. (ASYT) by Aquest Systems Corp. and private equity firm Gores Group LLC probably is not going to happen anytime soon. Asyst continues to review a $6.50 per share, $326.1 million expression of interest from Aquest and Gores, but appears unlikely to sign off after previously rejecting an expression of interest from the pair for between $5 and $6 a share. In nixing the prior offer, management contended Aquest and Gores were taking advantage of weakness in its shares during a down cycle for the semiconductor industry.

As if the ongoing interest from Aquest and Gores wasn't enough to keep it occupied, Asyst also has a potential battle on its hands with Riley Investment Management LLC, which is threatening a proxy fight for control of the company's board of directors. What's more, the Riley group also has indicated that Aquest CEO Mihir Parikh could participate in the solicitation of proxies should it decide to run a slate. Oh, Parikh just happens to be the founder of Asyst, though he left the company in 2003.

When asked to take a look at whether there is a conflict with someone attempting to acquire the company also involved in proxy solicitation, a source at a proxy solicitation firm said it was "a little bit strange."

"He's really in two camps, the camp of the potential acquirer and the camp of a dissident shareholder seeking to replace the board," he said. "It's not something you see too often."

In essence, should Riley decide to pursue the proxy fight, Asyst shareholders will be given a referendum on whether they want the company to be sold for $6.50 a share. But there's only one problem with that -- Aquest and Gores haven't actually made that $6.50 offer, merely expressed interest in making it. The potential buyers would have you believe Asyst has been dragging its feet in letting them conduct due diligence so they could make an offer. Asyst, meanwhile, wants a little more clarity on Parikh's involvement with Riley's group and assurances the buyers can finance a purchase.

Shares of Asyst were trading at $4.30 late in Thursday's session, a 34% discount to the potential $6.50 offer price.

Comments

[Tareq:]

"But there's only one problem with that -- Aquest and Gores haven't actually made that $6.50 offer, merely expressed interest in making it" i think this statement is not true based on the following :

money.cnn.com/news/new...

2008 Aug 05 03:26 AM