As Self-Imposed Acquisition Deadline Grows Near, Orbotech’s Stock Continues Downturn
Consumer electronics company Orbotech’s stock fell 9.12% since the beginning of the month, reaching $54.7 just over a week before its acquisition by KLA-Tencor was expected to be finalized
The stock of Nasdaq-listed Orbotech Ltd., a manufacturer of processing, inspection, and repair systems for electronic manufacturing, fell 9.12% since the beginning of December. The company reached $60.19 on December 3 following a two week upturn, but dropped to $54.7 by Friday market close.
Nasdaq-listed semiconductor company KLA-Tencor Corporation announced plans to acquire Orbotech in March, agreeing to pay around $69 per share for the Israel-based company, according to a company valuation of $3.4 billion. In October, at KLA-Tencor’s last earnings call, its CEO Rick Wallace said the company expects the deal to close by the end of 2018.
On December 4, KLA-Tencor published a presentation for its Nasdaq investor conference, discussing Orbotech’s pending acquisition and its place in KLA-Tencor’s growth strategy without giving a specific date. Orbotech’s stock started its current downturn the same day.As both companies operate in a number of jurisdictions, the deal required regulatory approval in Korea, Israel, the U.S., Taiwan, Japan, and China—all of which have been received barring China.