August Tech Again Rebuffs KLA-Tencor

The company will stick to its Rudolph Tech merger.
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August Technology

(AUGT)

on late Wednesday again rebuffed

KLA-Tencor's

(KLAC) - Get Report

takeover offer and said it is sticking with

Rudolph Technologies

(RTEC) - Get Report

.

August CEO Jeff O'Dell was responding to an announcement earlier Wednesday that KLA-Tencor's prospective bid

had cleared antitrust hurdles, which August had previously cited as a reason for not pursuing a deal with KLA-Tencor.

August said its plans for a stock-swap merger at $10.50 a share with Rudolph still represent a better long-term prospect for shareholders and customers than an $11.50-a-share cash offer from KLA-Tencor.

"KLA's recent public statements lead us to conclude that they are more interested in preventing the completion of our deal with Rudolph than beginning meaningful discussions with us," said O'Dell in a company statement.

He cited an unwillingness for KLA-Tencor to commit to a confidentiality agreement, KLA's interest in preventing two competitors from gaining scale, and past experience with KLA that "makes us seriously doubt their intentions and credibility."

"We have no reason to believe that any discussions at this point would result in a different outcome," O'Dell said.