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LTX-Credence Ends Verigy Merger After Advantest Takeover Bid

LTX-Credence Corp. (LTXCD) terminated plans to buy Verigy Ltd. (VRGY) after accepting a $15 million payment to end the agreement.

The termination fee was received March 25, LTX-Credence said today in a statement. The board of Verigy, which makes chip-testing equipment, said last week that it preferred an offer from rival Advantest Corp. (6857)

Advantest’s December bid of $15 a share in cash was “superior” to the all-stock agreement Verigy signed with LTX- Credence in November, Verigy’s board said March 21.

LTX-Credence, based in Milpitas, California, declined to make a counteroffer for Singapore-based Verigy by a March 25 deadline.

Advantest, based in Tokyo, makes testing equipment for memory chips.

To contact the reporter on this story: Beth Jinks in New York at bjinks1@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

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