The much-awaited buyout of Cymer (NASDAQ: CYMI) by global provider of lithography systems for the semiconductor industry, ASML (NSDAQ: ASML), will be underway even though securities attorneys at The Briscoe Law Firm and Powers Taylor will be investigating the proposed buyout. The definitive merger agreement between Cymer and ASML is being valued at a little more than 1.95 billion Euros, which is equal to about $2.55 billion. With such large numbers at play, the securities attorneys, led by shareholder rights attorney Willie Briscoe, have sued the company claiming that Cymer is shortchanging shareholders in the proposed agreement.
As per the definitive merger deal proposed by these two companies, Cymer shareholders receive $20.00 in cash as well as a non-negotiable 1.1502 ASML ordinary shares for every Cymer share. In totality, the proposed deal will result in the price of each share shooting up to $77.56. While Cymer and ASML are thrilled about the agreement, Briscoe indicates that the shareholders are not happy with the share prices being offered to them. With an ultimate aim of ensuring that every Cymer shareholder gets the maximum possible price for his/her share, Briscoe states, “Our investigation relates to the fairness of the proposed price for Cymer shareholders and whether the Board of Directors is adequately shopping the company in order to obtain the best possible price for the shareholders.”
Benefit for Cymer-ASML
The primary purpose of this acquisition agreement is the acceleration of the development and research pertaining to Extreme Ultraviolet (EUV) semiconductor lithography technology that Cymer has been working on. EUV is known as a very vital aspect of the future of the semiconductor industry. Over the last year, ASML and Cymer have worked together to develop EUV technology and a merger seems to be the next logical step for the companies.
Cymer is an industry leading developer of lithography light sources, which are used by chipmakers all over the world to create advanced semiconductor chips. The company is currently involved in the wholehearted development of EUV lithography that will pave the path of smaller and faster chips. This San Diego-based company has more than 1,200 employees on its payroll and has official representation at many spots across the world.
Cymer is a mid-cap company actively trading on the NASDAQ. With market capitalization of $2.3 billion, Cymer shares were trading at $71.45 per share as of the market closing on October 17, but leaped to $74.13 on October 18. This is a strong move of 3.8% from one closing price to another. This is certainly related to the news stemming from ASML.
Another mid-cap company that is trading on the NASDAQ is Isis Pharmaceuticals (NASDAQ: ISIS), which declined swiftly after the reported high in the last session. Trading of the drug discovery and development company shares were halted today as the FDA’s Endocrinologic and Metabolic Drugs Advisory Committee met regarding company’s new drug application (NDA) for the high-cholesterol drug, Kynamro. The committee recommended the drug for approval.
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