Bid On Verigy Raised To $15

Oppenheimer has published a research report on Verigy Limited VRGY after the bid on the company was raised to $15/share. In the report, Oppenheimer writes "Proving our recent thesis on the M&A triangle that is Advantest (ATE, $22.39, Not Rated), LTX-Credence (LTXC, $7.77, Not Rated), and VRGY, VRGY disclosed today that ATE has raised its unsolicited bid/proposal for VRGY to $15/sh from $12.15/sh. Our thesis has been that ATE has an ample war chest of net cash, and urgently needs VRGY to transform the co's dependence on DRAM test. We argue that TER's valuation, and VRGY's earnings synergies with LTXC provide a solid backstop in the event ATE walks from the negotiation table. Contrary to market concerns, we don't view anti-trust approval as a roadblock, and see wherewithal on both ATE's/VRGY's part to jettison non-core biz units (automotive test for ATE, functional memory test for VRGY) to compromise with regulators." Oppenheimer maintains its Outperform rating and $17 price target. Verigy Limited close dFriday at $13.03.