Citigroup Measures Probabilty Of Verigy Being Acquired By Advantest

Citigroup has published a research report on Verigy Ltd.

as the company inches closed to its Advantest Corp.

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.