Sumitomo Heavy, TPG raise Axcelis bid by 15 pct

By Jessica Hall

PHILADELPHIA (Reuters) - Japan's Sumitomo Heavy Industries Ltd and private equity firm TPG said on Monday that they had raised their bid for Axcelis Technologies Inc (ACLS.O: Quote, Profile, Research) by 15 percent to $615.6 million to encourage the semiconductor equipment maker to open talks for a friendly deal.

Sumitomo (6302.T: Quote, Profile, Research), a heavy-machinery maker, and TPG are offering $6 per share, up from an initial offer of $5.20.

The new bid represents a premium of 11 percent over Axcelis' closing stock price on Friday. It is also 48.5 percent higher than the company's closing share price on February 8, before news of the first offer.

Axcelis shares were up 8 cents, or 1.5 percent, at $5.45 in afternoon Nasdaq trading after rising as much as 5 percent to

$5.65.

Sumitomo and TPG said they had raised their offer after speaking to some Axcelis shareholders, but added that they did not plan to increase the bid again.

Axcelis, which makes ion implantation equipment used in manufacturing semiconductors, said it would evaluate the sweetened offer and respond in due course. It said shareholders need not take any action at this time.

On February 25, Axcelis rejected the initial bid, saying it undervalued the company and failed to reflect its long-term potential.