Can Novellus Reinvigorate Lam Research?
By Robert Castellano:There have been rumors of the purchase of Novellus (NVLS) by Lam Research (LRCX) practically since I started The Information Network in 1995. It finally happened, but it begs the question - Why now? Why not years ago?With Lam Research being the purchaser and roughly twice as big as Novellus, one can assume that it was a help to Novellus because the transaction values Novellus at $44.42 a share, representing a 28 percent premium over Novellus's closing stock price before the deal was announced, whereas Lam is paying a smaller premium than the average paid by buyers of semiconductor-equipment makers in recent years. In deals valued at more than $250 million during the past five years, acquirers have paid an average premium of 56 percent according to Bloomberg data.In other words, the acquisition makes it appear that Novellus was desperate to sell.However, if we look at 2011,Complete Story »