News Article
Veeco and FEI merger is called off
The uncertain outlook for the semiconductor industry has caused Veeco and FEI to have second thoughts about a merger.
Veeco Instruments and FEI have agreed to terminate their merger agreement of July 2002, citing difficult market and economic conditions as well as the uncertain timing of a recovery in the semiconductor equipment industry.
Veeco had agreed to acquire FEI in a stock-based deal worth about $1 billion that would have created the sixth largest manufacturer of semiconductor equipment (see related story). However, in December 2002 the companies announced that they would not be able to complete the deal by December 31, in which case under the terms of the agreement either party had the right to call a halt to the merger.
In early trading on January 9th shares of Veeco and FEI had both risen by nearly 15%. Also, both companies said that they expected to meet or exceed their fourth quarter earnings targets.
