ASM investor seeks improved profitability through new business plan, restructured board

By Angela McDaniels

Tacoma, Wash., Jan. 18 - ASM International NV shareholder Fursa Alternative Strategies LLC presented to the board a three-year plan to "reinvigorate" the company's front-end business and said it wants to see the team that created the plan appointed to a restructured, one-tier board.

"As board members, they would bring to bear a unique combination of proven individual leadership track records, deep understanding of the wafer processing industry and customer requirements, as well as international capabilities and customer relationships, specifically in Asia and the United States," Fursa said of the team in a Jan. 14 letter to the board. The letter was included in a schedule 13D filing with the Securities and Exchange Commission.

Fursa said it remains skeptical of current management's ability to improve the profitability of ASM's front-end business to a level that is on par with its peer group. In the investor's view, if the proposed team is not allowed to implement its plan, a loss of customers and market share and further destruction of shareholder value is more than likely.

If discussions about implementing the plan have not "substantially progressed" by Jan. 28, the investor said it must "consider all options."

In a Dec. 12 filing with the SEC, Fursa said it would consider holding an exchange offer for the company to ensure that the desired changes are carried out.

Fursa holds a 10.3% stake in the Bilthoven, Netherlands-based designer and manufacturer of equipment and materials used to produce semiconductor devices.

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