Electronics and communication device manufacturer II-VI Inc. (IIVI) announced Tuesday the withdrawal of its takeover bid for optics firm Zygo (ZIGO). The bid for $169.4 million, or $10 per share, was offered approximately one month ago, when Zygo rejected it.
II-VI CEO Francis J. Kramer said the company retracted its bid due to lack of communication from Zygo and unwillingness on the company's part to enter into discussions. Kramer believes that the two companies would have made a strong union.
"We were surprised and disappointed that, despite the fact that our offer was at a substantial premium and that we were willing to permit each shareholder to opt for either cash or II-VI stock, it was dismissed without giving us the opportunity to discuss its merits directly with Zygo's board," said Kramer in a release.
Shares of Zygo plunged 16% Tuesday to $8.46, while II-VI added 3.8% to $31.95.
