Axcelis shares down after suitor loses interest

Shares of Axcelis Technologies Inc. fell nearly 70 percent Monday after the semiconductor equipment company said Japan's Sumitomo Heavy Industries Ltd. has decided not to make an offer to buy it.

In a letter to Sumitomo Heavy Industries filed with the Securities and Exchange Commission, Axcelis said it is surprised that Sumitomo is unable to make a definitive offer for Axcelis since Sumitomo bid for the company earlier this year.

In February, Axcelis rejected a takeover offer from Sumitomo that valued the company at $544 million. Sumitomo later sweetened the offer by 80 cents to $6 per share, or $630 million. But in June, Axcelis entered into a confidentiality agreement with Sumitomo and TPG Capital to discuss a possible acquisition.

Axcelis and Sumitomo own a venture, SEN, that makes chip components.

Axcelis also said in the regulatory filing it is evaluating several refinancing plans for its convertible debt due in January 2009.

Shares of Axcelis Technologies, based in Beverly, Mass., plunged $2.81, or 66.3 percent, to end at $1.43 Monday. Earlier the stock traded at $1.25, its lowest point since going public eight year ago.