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ASM nears SVG takeover
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May 1, 2001: 5:36 p.m. ET
Dutch chip equipment maker nears $1.2B takeover of U.S.-based SVG
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NEW YORK (CNNfn) - Dutch firm ASM Lithography NV is near receiving approval from the U.S. government regarding its planned $1.2 billion takeover of Silicon Valley Group Inc., press reports said Tuesday.
ASM Lithography (ASML: up $0.60 to $27.67, Research, Estimates) has made numerous commitments to the U.S. government to meet security concerns, CEO Doug Dunn told the interactive version of the Wall Street Journal.
Congressional opposition initially stalled the merger and later the deal hit hurdles when the Pentagon voiced concern over SVG's sensitive lithography technology. San Jose, Calif.-based Sillicon Valley Group Inc. (SVGI: up $1.49 to $33.10, Research, Estimates) makes semiconductor manufacturing equipment which could be transferred to hostile countries, the WSJ said.
The Committee on Foreign Investment in the U.S. has raised dozens of concerns regarding the merger but all of them have been resolved. However, Dunn was optimistic that a deal would be approved by President George Bush by next week, Dunn told the FinancialTimes.com.
In October, rival chip equipment maker ASM Lithography agreed to acquire SVG in a $1.2 billion stock deal.
Doug Marsh, ASM spokesman, declined to confirm that an approval of the merger is near. "While we are having communication there is still a ways to go," Marsh said. "It's like the tide coming in and coming out."
President Bush has until midnight ET on May 8 to approve or deny the merger, he said.
Silicon Valley Group could not be reached for comment. 
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