ASM won't buy back convertibles as planned

By Angela McDaniels

Tacoma, Wash., Nov. 13 - ASM International NV put plans to repurchase its outstanding convertible notes on hold.

The company announced on Wednesday that it will not hold the extraordinary general meeting of shareholders scheduled for Dec. 3. Shareholders were set to consider a proposal that would have allowed the board to issue common shares in connection with financial transactions that would in turn allow ASM to repurchase the convertibles or buy back shares.

ASM planned to fund the repurchase with proceeds from one or more issues of securities such as convertibles, but the current capital market conditions have negatively affected this plan, according to a company news release.

"We are committed to both increasing shareholder value and protecting existing shareholders from potential dilution of their ownership positions. With the interests of our shareholders in mind, we will continue to monitor options and timing for managing our capital structure going forward," president and chief executive officer Arthur del Prado said in the release.

ASM International is a Bilthoven, the Netherlands-based designer and manufacturer of equipment and materials used to produce semiconductor devices.

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