Applied Materials Inc has made an unsolicited offer to acquire the atomic-layer deposition (ALD) and plasma-enhanced chemical vapor deposition (PE-CVD) units of ASM International of the Netherlands for between $400 million and $500 million.

The offer, which does not include the ASMI's back-end unit and some front-end tool facilities, was communicated orally, the company said in a release.

Based in Bilthoven, the Netherlands, ASM NV is Europe's second-largest maker of semiconductor equipment.

A divestment of the ALD and PC-CVD activities would have major implications for ASMI's current strategy and business model, it said, adding, ''ASMI's management board and supervisory board will internally discuss the offer and its implications. ASMI will determine its initial position with respect to the offer and make a public announcement thereof as soon as reasonably possible and no later than on June 14.''

The ALD and PE-CVD operations that Applied wants to buy account for 30 to 35 per cent of ASMI's front-end revenue of around 451 million euros ($704 million) last year.

The front-end unit posted a first-quarter net loss of 1.1 million euros, compared with a profit of 1.2 million euros a year earlier. ASMI has said it anticipates a net loss at the unit in the second quarter.

ASMI and its subsidiaries design and manufacture equipment and materials for making semiconductor devices – providing production solutions for wafer processing (front-end segment) as well as assembly and packaging (back-end segment) through facilities in the United States, Europe, Japan and Asia.

ASMI said its management board and supervisory board will internally discuss the offer and its implications and will make an announcement by June 14.

The offer comes as investor Hermes Focus Asset Management Europe Ltd is trying to gain shareholder support to oust ASMI chief executive Chuck del Prado and replace him Farhad Moghadam, a former senior vice president at Applied Materials.

Hermes, which owns 11 per cent of the shares, anticipates the proposed management will create $1 billion of additional value at the unit in three years by boosting sales and increasing earnings.
 
Hermes also moved a Dutch district court last month to withdraw shares issued to a foundation created to safeguard ASMI's independence. The foundation obtained a 29 per cent stake in the company a week before shareholders were scheduled to vote on Del Prado's dismissal.

On May 20, the court blocked the shareholder vote and gave ASMI one month to reach an agreement with Hermes. ASMI will have to inform the court by 23 June on the outcome of the talks.

ASMI may resist the Applied Materials offer, but its shareholders see a bonanza in the bid.

The real reason for the bid is Applied wants to gain greater access to ASMI's largest customer, Intel Corp. ASMI has been Intel's main low-k dielectrics equipment vendor for long.

Intel is also using ASML's equipment on a bigger front: high-k. Like low-k, Intel's main equipment vendor for high-k is ASMI, industry sources said.
 
Sources say an Applied-ASMI deal may also have the blessing of Intel.