Boston, MA 06/16/2014 (wallstreetpr) – Hermes Microvision Inc. of Taiwan, the leading supplier of semiconductor inspection tool and equipment, on June 13, 2014 denied any possibility of its acquisition by Applied Materials, Inc. (NASDAQ:AMAT). It was speculated in the media of Taiwan that Hermes Microvision was set to be acquired by AMAT and that too at a discount. The speculations led to dwindling shares of the Taiwan Company.
Hermes Microvision Said That This Was A Rumor
Talking to a local media, the Taiwanese firm confirmed that the news of acquisition was just a rumor and that too groundless. The company said that there were no plans of acquisition in the pipeline. The rumor on June 13, 2014 led to steep decline in the shares of the company, leading to a technical rebound due to heavy losses.
What Led To The Speculations?
The speculations of Applied Materials, Inc. (NASDAQ:AMAT) acquiring the Taiwanese market leader in the industry came to the limelight due to the market concerns that one of the crucial clients of Hermes Microvision- Taiwan Semiconductor Manufacturing Co., had slowed the pace of orders to the suppliers. The slowing activity of Taiwan Semiconductor Manufacturing Co. to the suppliers paved way for the speculations of acquisition of the Hermes by Applied Materials, Inc. (NASDAQ:AMAT).
Results Of The Speculation
As mentioned already, the speculation led to a steep fall in the shares of the company. In the meanwhile, it also worried the investors, who thought that in case the speculations were true, Hermes would be witnessing a massive drop in the sales.
However, fearless of the speculations, Hermes remained up to its forecast. The company had announced that the sales of Hermes for second quarter of the current fiscal year will lead to a growth of 50% in contrast with the Q1 2014. The company also announced that the momentum of the sales growth will keep on picking up for the rest of the current financial year.
