The merger agreement between Rudolph Technologies (RTEC - Get Report) and August Technology (AUGT) remains under water, but Rudolph CEO Paul McLaughlin wants investors to know the deal has climbed closer to the surface.
August and Rudolph
Rudolph shares, which traded at $13.77 when the merger with August was announced, have become more valuable since then, climbing back above $15 on Thursday. "This is not the original $10.50 offer," said McLaughlin. "It depends on where
For McLaughlin, this represents the increasing value that August shareholders will get if a merger with Rudolph is completed. Based on the deal's exchange ratios, August shares are now worth between $11.14 and $11.25 each. However, they're still below where the shares actually trade, even considering a seven-week pullback to $12.08.August has been at the center of a bidding war all year as Nanometrics, then Rudolph, and then KLA-Tencor (KLAC - Get Report) have all sought to buy the chip equipment company. August shares have continued to trade above the Rudolph offer as investors have anticipated more bidding. The main impetus is KLA-Tencor, the world's seventh-largest chip equipment company, which has said it will pay $11.50 a share in cash for August. KLA-Tencor has been quiet of late, but executives have