Although Verigy is still in buyout talks with Japanese rival Advantest, the size of the break-up fee is a sticking point in the negotiations, The Post has learned.
The two semiconductor-testing companies are haggling over the fee in part because of concerns that regulators could block Advantest’s $907 million buyout offer for Verigy, the source said.
Advantest is still studying Verigy’s financial statements and operations, known as due diligence, a source close to the situation said.
Meanwhile, Cupertino, Calif.-based Verigy is still trying to close its $400 million deal to buy LTX-Credence Corp., which was struck before Advantest made its bid.
In December, Advantest raised its $12.15-a-share price for Verigy to $15, saying the price was its “final offer.” Verigy’s shares closed Friday up 1.5 percent to $13.12, well below the increased offer price.
The aggressive move by a foreign-based pursuer is unusual, especially at a time when most tech companies are trading near their 52-week highs.
Advantest has the biggest market share in testing logic chips for designers such as Intel, while Verigy is one of the larger competitors in memory chip testing.
By buying Verigy, Advantest believes it would be better able to compete against chip-testing giant Teradyne.
A Verigy spokesman did not return calls.