Citigroup Measures Probabilty Of Verigy Being Acquired By Advantest
Citigroup has published a research report on Verigy Ltd. (NASDAQ: VRGY) as the company inches closed to its Advantest Corp. (NYSE: ATE) deal.
In the report, Citigroup writes "While VRGY has been radio silent, we are incrementally more positive on the probability of ATE acquisition of VRGY based on three factors: 1) Our 2nd round of customer checks indicate a more positive view on the deal; 2) our discussion with experts familiar with the antitrust issues suggest it won't be as hard as we thought to look at memory/non-memory test independently and VRGY has been considering shutting down/selling its memory test business ($17MM revs in 1st 9mos of 2010) anyway; and 3) our work indicates a level of diligence that would suggest engagement on both sides."
Citigroup has raised the price target on Verigy from $22 to $24 and maintains its Hold rating.
Verigy Ltd. closed yesterday at $12.84.
