Opinion ID: 2441952
Heading Depth: 1
Heading Rank: 5

Heading: Axcelis and SHI Renew Their Negotiations

Text: On June 6, 2008, Axcelis and SHI (together with TPG Capital LLP) entered into a confidentiality agreement to facilitate discussions concerning a possible acquisition of Axcelis. Axcelis management then furnished due diligence information to SHI, and met with SHI representatives to discuss SHI's due diligence requests. Axcelis and SHI agreed that SHI would submit a revised acquisition proposal by August 1, 2008. Shortly thereafter, however, SHI attempted to change that agreement. SHI requested a seven week extension to perform due diligence, after which it would decide whether or not to submit a revised acquisition proposal. SHI also indicated that if it made a proposal, it would need an additional five week period to conduct confirmatory due diligence. Axcelis did not agree to SHI's requested extension, and informed SHI that it would have until the end of August 2008 to submit a revised acquisition bid. Axcelis also proposed that any SEN-Axcelis combination should involve SHI exchanging its SEN shares for shares of Axcelis. SHI never submitted a revised acquisition bid. Instead, on September 4, 2008, SHI informed Axcelis that it was putting all discussions regarding an acquisition on hold. By September 15, 2008, after Axcelis publicly announced that development, Axcelis stock had dropped to $1.43 per share.