Investor pushes Axcelis board to solicit proposals following rejection of Sumitomo offer

By Lisa Kerner

Charlotte, N.C., Feb. 29 - Sterling Capital Management LLC wants Goldman Sachs to conduct a process of "proactive solicitation of interest" on behalf of Axcelis Technologies, Inc. after Axcelis turned down Sumitomo Heavy Industries, Ltd.'s recent offer to acquire the company.

The investor urged Axcelis' board to OK the process, which would include Sumitomo, in a schedule 13D filing with the Securities and Exchange Commission.

Sterling, in a letter to lead director Stephen R. Hardis, reminded Axcelis of its 11.9% stake in the company and said it would explore all available alternatives in an effort to "drive shareholder value."

On Feb. 25, Axcelis announced its board had unanimously rejected the unsolicited proposal by Sumitomo and TPG to acquire the company for $5.20 per share, saying the deal was not in the best interests of Axcelis shareholders.

In addition, Axcelis said the proposal ignores the value Sumitomo would obtain by acquiring full ownership of SEN Corp., its Japanese joint venture with Axcelis.

TPG is a minority partner and would have been the financing source for the transaction.

Sumitomo is an integrated manufacturer based in Tokyo.

Based in Beverly, Mass., Axcelis makes semiconductor manufacturing equipment.

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