AMSTERDAM, Nov 14 (Reuters) – Chip equipment maker Applied Materials (AMAT.O: Quote, Profile, Research, Stock Buzz) and private equity firm Francisco Partners have walked away from an approach to buy key units of Dutch rival ASM International (ASMI.AS: Quote, Profile, Research, Stock Buzz).
“Applied Materials Inc and Francisco Partners … will not pursue their interest in making such an offer,” ASMI said in a brief statement on Friday.
The Bilthoven-based company had previously rejected the bid of up to $800 million for its front-end business, which would have effectively turned ASMI into a holding company for its 53 percent stake in ASM Pacific Technology Ltd (0522.HK: Quote, Profile, Research, Stock Buzz).
Analysts had already considered the deal dead due to the credit crisis and a dramatic drop in sector valuations as a result of a deteriorating outlook for the chip market, which is facing overcapacity. (Reporting by Niclas Mika; Editing by David Holmes)