Advantest Makes Unsolicited Offer for Chip-Testing Equipment Maker Verigy

Verigy Ltd., a maker of testing equipment for semiconductor manufacturers, surged as much as 45 percent after it received an unsolicited takeover offer from Advantest Corp.

Advantest offered $12.15 a share, Verigy said today in a statement. Verigy has an existing sale agreement with LTX- Credence Corp.

Machines made by the three companies are key to manufacturing semiconductors. While Verigy said the Advantest offer is “not superior” to the LTX-Credence deal, it is entering negotiations with Advantest to try to create a better transaction.

A combination of LTX-Credence and Verigy would be better for customers, employees and shareholders than an acquisition by Advantest, LTX said in a separate statement.

Verigy, based in Singapore, surged $3.81, or 42 percent, to $12.95 at 4 p.m. New York time on the Nasdaq Stock Market, the biggest jump since shares were sold to the public in June 2006. LTX, based in Milpitas, California, dropped $1.05, or 12 percent, to $7.40. Advantest American depositary receipts, each representing one ordinary share, fell 18 cents to $21.52.

To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net.

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net.

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