Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Verigy (Nasdaq: VRGY ) popped 11% in intraday trading today after disclosing that the regulatory waiting period for its planned acquisition by Advantest (NYSE: ATE ) has passed without any objections from the Department of Justice.
So what: In March, the two test equipment companies announced an agreement for Advantest to acquire Verigy for $15 per share in cash. The deal price was 64% above Verigy's closing price when news of an offer from Advantest broke on Dec. 3, 2010.
Now what: After deal discussions became public in December, Verigy's stock generally traded above $14 on relatively high confidence the deal would be completed. Although Korean and Taiwanese authorities had already approved the transaction, the stock traded as low as $13.13 Thursday, on concerns the deal would not pass the Department of Justice's antitrust test. The next test is June 17, when Verigy shareholders vote on the deal.
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