Opinion ID: 2441952
Heading Depth: 1
Heading Rank: 3

Heading: SHI's Acquisition Proposals

Text: On February 4, 2008, SHI (together with TPG Capital LLP) made an unsolicited bid to acquire Axcelis for $5.20 per share. That day, Axcelis shares closed at a price of $4.18 per share. On February 7, Axcelis informed SHI that it would respond to its acquisition proposal after consulting with Axcelis' advisors. On February 25, 2008, the Board issued a press release announcing its rejection of SHI's proposal. The Board determined that the $5.20 per share offered price materially discounted Axcelis' true worth, because it did not assign any value for Axcelis' opportunity to retrieve market share from its competitors, or for the synergistic value of Axcelis' 50% interest in SEN. On March 10, 2008, SHI made a second bid to acquire Axcelis, this time for $6 per share. That day, Axcelis shares closed at a price of $5.45 per share. On March 17, the Board rejected SHI's second proposal, stating that the proposal undervalues Axcelis and is not in the best interests of Axcelis and its shareholders. The Board expressed its willingness to meet with SHI privately, however, to explore whether the parties could reach an agreement on a transaction involving SEN.