Varian Semiconductor Equipment Associates (VSEA) stocks skyrocket on news of impending takeover

Varian Semiconductor Equipment Associates Inc.’s (Nasdaq: VSEA) shares surged 51.1% to $61.29 Wednesday, after Applied Materials Inc. (Nasdaq: AMAT) said it would acquire the ion-implantation equipment supplier for $4.9 billion. Volume for Varian was 18.3 million shares before noon ET, overwhelming a full-day average of 1.2 million.

Santa Clara, California-based Applied Materials says it will pay $63 a share, or 55% more than yesterday’s closing price. It also said the merger was approved by the boards of directors of both companies. Varian is based in Gloucester, Massachusetts.

Applied Materials Chief Executive Officer Mike Splinter said “Varian is a great fit for our strategy to profitably grow share in our core semiconductor business with best-in-class technology and talent.

“The pace of product innovation is accelerating, requiring devices that are more mobile, more connected and more personalized.”

Varian management was not available for comment.

Tags: AMAT, buzz stocks, nasdaq, technology, Technology Stocks, VSEA

This entry was posted on Wednesday, May 4th, 2011 at 12:03 pm by Glenn and is filed under Technology Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.